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The following income statements illustrate different cost structures for two competing companies . Income Statements Company Name Hill Creek Number of customers ( a )
The following income statements illustrate different cost structures for two competing companies
Income Statements
Company Name
Hill Creek
Number of customers a
Sales revenue a times $ $ $
Variable cost a times $ NA
Variable cost a times $ NA
Contribution margin
Fixed cost
Net income $ $
Required
Reconstruct Hills income statement, assuming that it serves customers when it lures customers away from Creek by lowering the sales price to $ per customer.
Reconstruct Creeks income statement, assuming that it serves customers when it lures customers away from Hill by lowering the sales price to $ per customer.
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