The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Zachary 89 Walton Number of customers (a) Sales revenue (a x $230) 89 Variable cost (a x $190) Variable cost (a x $0) Contribution margin Fixed cost Net income $ 20,470 N/A $ 20,470 (16,910) 0 20,470 (16,910) $ 3,560 N/A 3,560 0 $ 3,560