Exercise 11-12 Using fixed cost as a competitive business strategy LO 11-2 The following Income statements illustrate different cost structures for two competing companies Income statements vernon 87 Thornton Number of customers (a) Sales revenue (a x $210) Variable cost (a x $185) variable cost (a x $e) Contribution margin Fixed cost Net income 87 $ 18,270 18,27e N/A (16,095) 18,27e 50 2,175 16,095 $ 2,175 $2,175 Requirec a. Reconstruct Vernon's Income statement, assuming that it serves 174 customers when It lures 87 customers away from Thornton by lowering the sales price to $110 per customer. b. Reconstruct Thornton's Income statement, assuming that It serves 174 customers when It lures 87 customers away from Vernon 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 Vernon's income statement, assuming that it serves 174 customers when it lures 87 customers away from Thornton by lowering the sales price to $110 per customer ERNON COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss)