The following income statements illustrate different cost structures for two competing companies:

	Company Name
	Kent			Trent
Number of customers (a)		86			86
Sales revenue (a $250)	$	21,500		$	21,500
Variable cost (a $185)		N/A			(15,910	)
Variable cost (a $0)		0			N/A
Contribution margin		21,500			5,590
Fixed cost		(15,910	)		0
Net income	$	5,590		$	5,590

Reconstruct Kents income statement, assuming that it serves 172 customers when it lures 86 customers away from Trent by lowering the sales price to $150 per customer.

Sales revenue

Variable cost

Contribution margin

Fixed cost

Net income

Reconstruct Trents income statement, assuming that it serves 172 customers when it lures 86 customers away from Kent by lowering the sales price to $150 per customer.

Sales revenue

Variable cost

Contribution margin

Fixed cost

Net income