The following income statements illustrate different cost structures for two competing companies:

Income Statements
	Company Name
	Munoz				Jordan
Number of customers (a)		88				88
Sales revenue (a $200)	$	17,600			$	17,600
Variable cost (a $190)		N/A				(16,720	)
Variable cost (a $0)		0				N/A
Contribution margin		17,600				880
Fixed cost		(16,720	)			0
Net income	$	880			$	880

Required

1. Reconstruct Munozs income statement, assuming that it serves 176 customers when it lures 88 customers away from Jordan by lowering the sales price to $100 per customer.

2. Reconstruct Jordans income statement, assuming that it serves 176 customers when it lures 88 customers away from Munoz by lowering the sales price to $100 per customer.

Munoz

sales revenue:

Variable cost:

Contribution Margin:

Fixed Cost

Net income (loss)

Jordan

Sales revenue :

Variable cost:

Contribution margin:

Fixed cost

Net income: