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The following income statements illustrate different cost structures for two competing companies Income Statements compan venn ompany Name Walton Vernon Number of customers (a) Sales
The following income statements illustrate different cost structures for two competing companies Income Statements compan venn ompany Name Walton Vernon Number of customers (a) Sales revenue (a $210) Variable cost (a $180) Variable cost (a $0) Contribution margin Fixed cost Net income 89 N/A 18,690 89 S18,690 18,690 (16,020) N/A 2,670 16,020 $ 2,670 $ 2,670 Required a. Reconstruct Walton's income statement, assuming that it serves 178 customers when it lures 89 customers away from Vernon by lowering the sales price to $110 per customer. b. Reconstruct Vernon's income statement, assuming that it serves 178 customers when it lures 89 customers away from Walton 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 Walton's income statement, assuming that it serves 178 customers when it lures 89 customers away from Vernon by lowering the sales price to $110 per customer. WALTON COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) Required A RequiredB>
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