Income statements for three companies are provided below: Company A Company B Company C Sales...
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Accounting
Income statements for three companies are provided below: Company A Company B Company C Sales (20 units) $ 1,000 $ 1,000 $ 1,000 Less variable costs 600 300 Less fixed costs 200 500 800 Net income $ 200 $ 200 $ 200 Required: (a) Prepare new income statements for the firms assuming each sells one additional unit (i.e. each firm sells 21 units) (b) Briefly describe the effect of cost structure on profitability
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