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I need help on figuring out A and B. The following income statements illustrate different cost structures for two competing companies Income Statements Company Name
I need help on figuring out A and B.
The following income statements illustrate different cost structures for two competing companies Income Statements Company Name Stuart 86 $ 20,640 N/A Solomon 86 20,640 Number of customers (a) sales revenue (a $240) Variable cost (a x $175) Variable cost (ax $0) Contribution margin Fixed cost (15,050) N/A 5,590 20,640 15,050 $5,590 Net income $ 5,590 Required a. Reconstruct Stuart's income statement, assuming that it serves 172 customers when it lures 86 customers away from Solomon by lowering the sales price to $140 per customer b. Reconstruct Solomon's income statement, assuming that it serves 172 customers when it lures 86 customers away from Stuart by lowering the sales price to $140 per customer. Complete this question by entering your answers in the tabs below. Required A Required EB Reconstruct Stuart's income statement, assuming that it serves 172 customers when it lures 86 customers away from Solomon by lowering the sales price to $140 per customer. STUART COMPANY Income Statement Sales revenue Variable cost Contribution margin$ Fixed cost Net income (loss)Step by Step Solution
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