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The following income statements illustrate different cost structures for two competing companies: Income Statements: Number of customers (a) Sales revenue (a $240) Variable cost (a
The following income statements illustrate different cost structures for two competing companies: Income Statements: Number of customers (a) Sales revenue (a $240) Variable cost (a x $180) Variable cost (50) Contribution margin Fixed cost Net income Company Name Adams 81 Zachary 81 $ 19,440 N/A (14,580) $ 19,440 19,440 (14,580) $ 4,860 N/A 4,860 0 $ 4,860 Required a. Reconstruct Adams's income statement, assuming that it serves 162 customers when it lures 81 customers away from Zachary by lowering the sales price to $140 per customer. b. Reconstruct Zachary's income statement, assuming that it serves 162 customers when it lures 81 customers away from Adams by lowering the sales price to $140 per customer. Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Adams's income statement, assuming that it serves 162 customers when it lures 81 customers away from Zachary by lowering the sales price to $140 per customer. ADAME CONDUNY Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Adams's income statement, assuming that it serves 162 customers when it lures 81 customers away from Zachary by lowering the sales price to $140 per customer. ADAMS COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) Required A Required B > a. Reconstruct Adams's income statement, assuming that it serves 162 customers when it lures 81 customers away from Zachary by lowering the sales price to $140 per customer. b. Reconstruct Zachary's income statement, assuming that it serves 162 customers when it lures 81 customers away from Adams by lowering the sales price to $140 per customer. Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Zachary's income statement, assuming that it serves 162 customers when it lures 81 customers away from Adams by lowering the sales price to $140 per customer. ZACHARY COMPANY Sales revenue Variable cost Income Statement Contribution margin Fixed cost Net income (loss) < Required A Required B>
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