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Income Statements Company Name Franklin Finch Number of customers (a) 86 86 Sales revenue (a X $240) $ 20,640 $ 20,640 Variable cost (a x
Income Statements Company Name Franklin Finch Number of customers (a) 86 86 Sales revenue (a X $240) $ 20,640 $ 20,640 Variable cost (a x $175) N/A (15,650) Variable cost (a x $0) N/A Contribution margin 20,640 5,590 Fixed cost (15,050) Net income $ 5,590 $ 5,590 Required a. Reconstruct Franklin's income statement, assuming that it serves 172 customers when it lures 86 customers away from Finch by lowering the sales price to $140 per customer b. Reconstruct Finch's income statement, assuming that it serves 172 customers when it es 86 customers away from Franklin by lowering the sales price to $140 per customer. Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Finch's income statement, assuming that it serves 172 customers when it lures 86 customers away from Franklin by lowering the sales price to $140 per customer FINCH COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) $ 0 $ 0
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