Problem: Module 5 Textbook Problem 3 Learning Objectives: 5-3 Identify and describe fixed, variable, and mixed cost behavior 5-4 Demonstrate the effects of operating leverage on profitability The following income statements illustrate different cost structures for two competing companies: Incone Statenents Company Name Finch Fanning Number of customers (a) 82 82 Sales revenue ( x 5220) $ 18,040 $ 18,040 Variable cost (a X $175) N/A (14,350) Variable cost (a x 30) N/A Contribution margin 18.040 3,690 Fixed cost (14,350) Net income $ 3,690 $ 3,690 Required a. Reconstruct Finch's income statement, assuming that it serves 164 customers when it lures 82 customers away from Fanning by lowering the sales price to $120 per customer b. Reconstruct Fanning's income statement, assuming that it serves 164 customers when it lures 82 customers away from Finch by lowering the sales price to $120 per customer. Complete this question by entering your answers in the tabs below. Required a. Reconstruct Finch's income statement, assuming that it serves 164 customers when it lures 82 customers away from Fanning by lowering the sales price to $120 per customer. b. Reconstruct Fanning's income statement, assuming that it serves 164 customers when it lures 82 customers away from Finch 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 Fanning's income statement, assuming that it serves 164 customers when it lures 82 customers away from Finch by lowering the sales price to $120 per customer FANNING COMPANY Income Statement Sales revenue Variable cost Contribution margin $ 0 Fixed cost Not income (los) $ 0 Required a. Reconstruct Finch's income statement, assuming that it serves 164 customers when it lures 82 customers away from Fanning by lowering the sales price to $120 per customer. b. Reconstruct Fanning's income statement, assuming that it serves 164 customers when it lures 82 customers away from Finch 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 Finch's income statement, assuming that it serves 164 customers when it lures 82 customers away from Fanning by lowering the sales price to $120 per customer FINCH COMPANY Income Statement Sales revenue Variable cost Contribution margins Fixed cost Net income (105) $ 0 0 0 Required a >