The following income statements illustrate different cost structures for two competing companies Income Statements compan...
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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 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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