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please explain how to solve The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Munoz Jordan Number of
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The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Munoz Jordan Number of customers (a) 83 83 Sales revenue (a * $210) $ 17,430 $ 17,430 Variable cost (a x $175) Cost (a * $175) N/A (14,525) Variable cost (a * $0) N/A Contribution margin 17,430 2,905 Fixed cost (14,525) Net income $ 2,905 $ 2,905 Required a. Reconstruct Munoz's income statement, assuming that it serves 166 customers when it lures 83 customers away from Jordan by lowering the sales price to $110 per customer. b. Reconstruct Jordan's income statement, assuming that it serves 166 customers when it lures 83 customers away from Munoz by lowering the sales price to $110 per customer. Required a. Reconstruct Munoz's income statement, assuming that it serves 166 customers when it lures 83 customers away from Jordan by lowering the sales price to $110 per customer. b. Reconstruct Jordan's income statement, assuming that it serves 166 customers when it lures 83 customers away from Munoz by lowering the sales price to $110 per customer. Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Jordan's income statement, assuming that it serves 166 customers when it lures 83 customers away from Munoz by lowering the sales price to $110 per customer. 18,260 JORDAN COMPANY Income Statement Sales revenue $ Variable cost Contribution margin $ Fixed cost Net income (loss) $ 18,260 18,260Step by Step Solution
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