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:

Required

a$.$ Reconstruct Franklin's income statement, assuming that it serves $166$ customers when it lures $83$ customers away from finch by

lowering the sales price to $$140$ per customer.

b$.$ Reconstruct Finch's income statement, assuming that it serves $166$ customers when it lures $83$ customers away from Franklin by

lowering the sales price to $$140$ per customer.

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

Required A

Reconstruct Franklin's income statement, assuming that it serves $166$ customers when it lures $83$ customers away from Finch

by lowering the sales price to $$140$ per customer.