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The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Munoz Jordan Number of customers (a) 87 87 Sales
The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Munoz Jordan Number of customers (a) 87 87 Sales revenue (a * $240) $ 20,880 $ 20,880 Variable cost (a * $185) N/A (16,095) Variable cost (a * $0) N/A Contribution margin 20,880 4,785 Fixed cost (16,895) @ Net income $ 4,785 $ 4,785 Required a. Reconstruct Munoz's income statement, assuming that it serves 174 customers when it lures 87 customers away from Jordan by lowering the sales price to $140 per customer. b. Reconstruct Jordan's income statement, assuming that it serves 174 customers when it lures 87 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 Reconstruct Munoz's income statement, assuming that it serves 174 customers when it lures 87 customers away from Jordan by lowering the sales price to $140 per customer. MUNOZ COMPANY Income Statement Sales revenue Variable cost Contribution margin $ Fixed cost Net income (loss) $ 0 0 Required B > The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Munoz Jordan Number of customers (a) 87 87 Sales revenue (a * $240) $ 20,880 $ 20,880 Variable cost (a * $185) N/A (16,095) Variable cost (a * $0) @ N/A Contribution margin 20,880 4,785 Fixed cost (16,095) 0 Net income $ 4,785 $ 4,785 Required a. Reconstruct Munoz's income statement, assuming that it serves 174 customers when it lures 87 customers away from Jordan by lowering the sales price to $140 per customer. b. Reconstruct Jordan's income statement, assuming that it serves 174 customers when it lures 87 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 Reconstruct Jordan's income statement, assuming that it serves 174 customers when it lures 87 customers away from Munoz by lowering the sales price to $140 per customer JORDAN COMPANY Income Statement Sales revenue Variable cost Contribution margin $ Fixed cost Net income (loss) $ 0 0
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