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no hand written answers please. Number of customers (a) Sales revenue (a * $200) Variable cost (ax $185) Variable cost (a * $0) Contribution margin
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Number of customers (a) Sales revenue (a * $200) Variable cost (ax $185) Variable cost (a * $0) Contribution margin Fixed cost Net income Company Name Thornton Stuart 89 89 $ 17,800 $ 17,800 N/A (16,465) 0 N/A 17,800 1,335 (16.465) 0 $ 1,335 $ 1,335 Required a. Reconstruct Thornton's income statement, assuming that it serves 178 customers when it lures 89 customers away from Stuart by lowering the sales price to $100 per customer. b. Reconstruct Stuart's Income statement, assuming that it serves 178 customers when it lures 89 customers away from Thornton by lowering the sales price to $100 per customer. Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Thornton's income statement, assuming that it serves 178 customers when it lures 89 customers away from Stuart by lowering the sales price to $100 per customer. THORNTON COMPANY Income Statement Sales revenue Variable cost Contribution margin Faced cost Net Income (los) Number of customers (a) Sales revenue (a $200) Variable cost (ax $185) Variable cont (a $0) Contribution margin Fixed cost Net income Thornton 89 $ 17,800 N/A 0 17,800 16,465) $ 1,335 Stuart 89 $ 17,800 (16,465) N/A 1,335 0 $ 1,335 Required a. Reconstruct Thornton's income statement, assuming that it serves 178 customers when it lures 89 customers away from Stuart by lowering the sales price to $100 per customer. b. Reconstruct Stuart's income statement, assuming that it serves 178 customers when it lures 89 customers away from Thornton by lowering the sales price to $100 per customer. Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Stuart's income statement, assuming that it serves 178 customers when it lures 89 customers away from Thornton by lowering the sales price to $100 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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