The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Baird 86 Number of customers (a) Sales revenue (a x $220) Variable cost (a x $185) Variable cost (a x $0) Contribution margin Fixed cost Net income Adams 86 $ 18,920 N/A $ 18,920 (15,910) 0 N/A 18,920 (15,910) 3,010 0 $ 3,010 $ 3,010 Required a. Reconstruct Baird's income statement, assuming that it serves 172 customers when it lures 86 customers away from Adams by lowering the sales price to $120 per customer. b. Reconstruct Adams's income statement, assuming that it serves 172 customers when it lures 86 customers away from Baird by lowering the sales price to $120 per customer. Reconstruct Baird's income statement, assuming that it serves 172 customers when it lures 86 customers away from Adams by lowering the sales price to $120 per customer. BAIRD COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) Reconstruct Adams's income statement, assuming that it serves 172 customers when it lures 86 customers away from Baird by lowering the sales price to $120 per customer. ADAMS COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss)