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The following income statements illustrate different cost structures for two competing companies Income Statements Company Name Thornton Stuart Number of customers (a) 89 89 Sales
The following income statements illustrate different cost structures for two competing companies Income Statements Company Name Thornton Stuart Number of customers (a) 89 89 Sales revenue (a x $230) $ 20,479 $ 20,470 Variable cost (a x $180) N/A (16,020) Variable cost (a x $0) e Contribution margin 20,470 4,450 Fixed cost (16,020) Net income $ 4,450 $ 4,450 N/A Required a. Reconstruct Thornton's income statement assuming that it serves 178 customers when it lures 89 customers away from Stuart by lowering the sales price to $130 per customer b. Reconstruct Stuart's income statement, assuming that it serves 178 customers when it lures 89 customers away from Thornton by lowering the sales price to $130 per customer Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Thornton's income statement, assuming that it serves 178 customers when it lures 89 customers away from Stuart by lowering the sales price to $130 per customer. THORNTON COMPANY Income Statement Sales revenue Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Stuart's income statement, assuming that it serves 178 customers when it lures 89 customers away from Thornton by lowering the sales price to $130 per customer. STUART COMPANY Income Statement Sales revenue
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