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The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Zachary Walton Number of customers (a) 83 83 Sales

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The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Zachary Walton Number of customers (a) 83 83 Sales revenue (ax $210) $ 17,430 $17.430 Variable cost (a X $180) N/A (14,940) Variable cost (a x $0) N/A Contribution margin 17.430 2,490 Fixed cost (14,940) Net Income $ 2,490 $ 2.490 Required a. Reconstruct Zachary's income statement, assuming that it serves 166 customers when it lures 83 customers away from Walton by lowering the sales price to $110 per customer. b. Reconstruct Walton's income statement, assuming that it serves 166 customers when it lures 83 customers away from Zachary by lowering the sales price to $110 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 166 customers when it lures 83 customers away from Walton by lowering the sales price to $110 per customer. ZACHARY COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) Reconstruct Walton's income statement, assuming that it serves 166 customers when it lures 83 customers away from Zachary by lowering the sales price to $110 per customer. WALTON COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss)

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