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The following income statements illustrate different cost structures for two competing companies Income Statements Company Name 200 N/A Hill Creek Number of customers (a) Sales
The following income statements illustrate different cost structures for two competing companies Income Statements Company Name 200 N/A Hill Creek Number of customers (a) Sales revenue (ax $200) 40,000 Variable cost (ax $140) Variable cost (a x $0) Contribution margin Pixed cost Net income 200 $ 40,000 (28,000) N/A 12,000 40,000 (28,000) $ 12,000 12,000 Required a. Reconstruct Hill's income statement, assuming that it serves 400 customers when it lures 200 customers away from Creek by lowering the sales price to $120 per customer. b. Reconstruct Creek's income statement, assuming that it serves 400 customers when it lures 200 customers away from Hill by lowering the sales price to $120 per customer. Complete this question by entering your answers in the tabs below RequiredARequired B Reconstruct Hill's income statement, assuming that it serves 400 customers when it lures 200 customers away from Creek by lowering the sales price to $120 per customer HILL COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) 0 0
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