$1$

Exercise $2-12$A $($Algo$)$ Using fixed cost as a competitive business strategy LO $2-1,2-2$

The following income statements illustrate different cost structures for two competing companies:

$8$

points

Hint

Required

a$.$ Reconstruct Benson's income statement, assuming that it serves $164$ customers when it lures $82$ customers away from Baird by

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lowering the sales price to $$120$ per customer.

b$.$ Reconstruct Baird's income statement, assuming that it serves $164$ customers when it lures $82$ customers away from Benson by lowering the sales price to $$120$ per customer.

Complete this question by entering your answers in the tabs below.

Required A

Required B

Reconstruct Benson's income statement, assuming that it serves $164$ customers when it lures $82$ customers away from Baird by lowering the sales price to $$120$ per customer.

$\backslash$table$[[$BENSON COMPANY$],[$Income Statement$],[$Sales revenue,$$,],[$Variable cost$,,],[$Contribution margin,$$,],[$Fixed cost$,,],[$Net income $($loss$),$$$,680,]]$

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GrawExercise $2-12$A $($Algo$)$ Using fixed cost as a competitive business strategy LO $2-1,2-2$

The following income statements illustrate different cost structures for two competing companies:

$8$

points

Hint

Required

a$.$ Reconstruct Benson's income statement, assuming that it serves $164$ customers when it lures $82$ customers away from Baird by lowering the sales price to $$120$ per customer.

b$.$ Reconstruct Baird's income statement, assuming that it serves $164$ customers when it lures $82$ customers away from Benson by lowering the sales price to $$120$ per customer.

Complete this question by entering your answers in the tabs below.

Required A

Reconstruct Baird's income statement, assuming that it serves $164$ customers when it lures $82$ customers away from Benson by lowering the sales price to $$120$ per customer.

$\backslash$table$[[$BAIRD COMPANY$],[$Income Statement$],[$Sales revenue,$$,19,680],[$Variable cost$,,],[$Contribution margin,$$,19,680],[$Fixed cost$,,],[$Net income $($loss$),$$$,19,680]]$

Homework Asugrmert

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