Exercise 2-12A (Algo) Using fixed cost as a competitive business strategy LO 2-1, 2-2 The following income statements illustrate different cost structures for two competing companies: 85 Income Statements Company Name Munoz Jordan Number of customers (a) Sales revenue (a * $220) $ 18,700 $ 18,700 Variable cost fax $175) N/A (14,875) Variable cost fax $0) N/A Contribution margin 18.700 3,825 Fixed cost (14,875) Net Income $ 3,825 $ 3,825 Required a. Reconstruct Munoz's income statement, assuming that it serves 170 customers when it lures 85 customers away from Jordan by lowering the sales price to $120 per customer. b. Reconstruct Jordan's income statement, assuming that it serves 170 customers when it lures 85 customers away from Munoz by lowering the sales price to $120 per customer. Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Munoz's income statement, assuming that it serves 170 customers when it lures 85 customers away from Jordan by lowering the sales price to $120 per customer. MUNOZ COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) $ Required Required B Required A Required B Reconstruct Jordan's income statement, assuming that it serves 170 customers when it lures 85 customers aw. by lowering the sales price to $120 per customer. JORDAN COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) Required A Required B >