Exercise 2-12A (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: Income Statements Company Name Zachary Walton Number of customers (a) 82 82 Sales revenue (a $220) $18,040 $18,040 Variable cost (a $185) N/A (15,170) Contribution margin 18,040 2,870 Fixed cost (15,170) 0 Net income $2,870 $2,870 Required Reconstruct Zacharys income statement, assuming that it serves 164 customers when it lures 82 customers away from Walton by lowering the sales price to $120 per customer. Reconstruct Waltons income statement, assuming that it serves 164 customers when it lures 82 customers away from Zachary by lowering the sales price to $120 per