Exercise 11-12A (Algo) Using fixed cost as a competitive business strategy LO 11-1, 11-2 The following income statements illustrate different cost structures for two competing companies: Income statements Company Home Franklin Finch Number of customer's (O) 50 90 Sales revenue (a $240) $ 21,600 $ 21,600 Variable cost (* $175) NA (15.750 Varlable cost (50) NA Contribution margin 21,600 5,650 Fixed cost (15,250) Net Income $ 5,050 $ 5,850 Required a, Reconstruct Franklin's income statement, assuming that it serves 180 customers when it fures 90 customers away from Finch by lowering the sales price to $140 per customer b. Reconstruct Finch's income statement assuming that it serves 180 customers when itlures 90 customers away from Franklin by lowering the sales price to $140 per customer Complete this question by entering your answers in the tabs below. Pry 5 11 Next > 5 Required o. Reconstruct Franklin's income statement, assuming that it serves 180 customers when it lures 90 customers away from Finch by lowering the sales price to $140 per customer b. Reconstruct Finch's income statement, assuming that it serves 180 customers when itlures 90 customers away from Franklin tyy lowering the sales price to $140 per customer Is Book Complete this question by entering your answers in the tabs below. Hint ASR Required A Required B Print Terences Reconstruct Franklin's income statement, assuming that it serves 180 customers when it lures 90 customers away from Finch by lowering the sales price to $140 per customer. FRANKLIN COMPANY Income Statement Sales revenue Variable cost Contribution margin S Foxed cost Net income (10) $ 0 0 Luthwes w customers away from Finch by sales price to $140 per customer b. Reconstruct Finch's income statement, assuming that it serves 180 customers when it lures 90 customers away from Franklin by lowering the sales price to $140 per customer ok Complete this question by entering your answers in the tabs below. Required A Required B + ces Reconstruct Finch's income statement, assuming that it serves 180 customers when it lures 90 customers away from Franklin by lowering the sales price to $140 per customer. FINCH COMPANY Income Statement Sales revenue Variable cost Contribution margin 5 Fixed cost Net Income doss) $ 0 0