Question
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Munoz Jordan Number of customers (a) Sales revenue
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Munoz Jordan Number of customers (a) Sales revenue (a x $240) Variable cost (a $185) Variable cost (a 86 86 $ 20,640 N/A $ 20,640 $0) 0 (15,910) /A Contribution margin. Fixed cost Net income 20,640 (15,910) 4,730 0 $ 4,730 $ 4,730 Required a. Reconstruct Munoz's income statement, assuming that it serves 172 customers when it lures 86 customers away from Jordan by lowering the sales price to $140 per customer. b. Reconstruct Jordan's income statement, assuming that it serves 172 customers when it lures 86 customers away from Munoz by lowering the sales price to $140 per customer. Complete this question by entering your answers in the tabs below. Required A Required B
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