Brief Exercise 11-2 (Algo) How cost behavior effects net income LO 11-2 The following two income statements relate to Buy Low, a discount retailer, and Sky Captain, a luxury airline: Income Statements Company Names Number of customers Buy Low Sky Captain Sales Revenue 1,100 1,100 Variable Cost $259,000 $259,000 Contribution Margin (219,000) (0) Fixed Cost 40,000 259,000 Net Income (0) (219,000) Required: Which company's net income would be more sensitive to changes in the number of customers? Which company's net income would be more sensitive to changes in the number of customers? Prev 2 of 4 Next