Assuming sales revenue decreases by 20% due to a decrease in sales quantity, prepare a CVP income statement for each company.

The following single-column CVP income statements are available for Pharoah Company and Sheridan Company. Pharoah Company Sheridan Company Sales $ 560,000 $560,000 Variable costs 336,000 201,600 Contribution margin 224,000 358,400 Fixed costs 190,400 302,400 Net income $33,600 $ 56,000 Assuming that sales revenue decreases by 20% due to a decrease in sales quantity, prepare a CVP income statement for each company. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Pharoah Company Sheridan Company