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 Number of customers (a) Sales revenue (a $210) Variable cost (a $190) Contribution margin Fixed cost Net income Required Company Name Munoz Jordan 85 85 $17,850 N/A 17,850 (16,150) $17,850 (16,150) 1,700 0 $1,700 $1,700 a. Reconstruct Munoz's income statement, assuming that it serves 170 customers when it lures 85 customers away from Jordan by lowering the sales price to $110 per customer. b. Reconstruct Jordan's income statement, assuming that it serves 170 customers when it lures 85 customers away from Munoz 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 Munoz's income statement, assuming that it serves 170 customers when it lures 85 customers away from Jordan) Fixed cost Net income (16,150) $1,700 0 $1,700 Required a. Reconstruct Munoz's income statement, assuming that it serves 170 customers when it lures 85 customers away from Jordan by lowering the sales price to $110 per customer. b. Reconstruct Jordan's income statement, assuming that it serves 170 customers when it lures 85 customers away from Munoz 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 Munoz's income statement, assuming that it serves 170 customers when it lures 85 customers away from Jordan by lowering the sales price to $110 per customer. MUNOZ COMPANY Income Statement Sales revenue Variable cost Contribution margin $ Fixed cost Net income (loss) $ 0 Wend A Required B > ces Required a. Reconstruct Munoz's income statement, assuming that it serves 170 customers when it lures 85 customers away from Jordan by lowering the sales price to $110 per customer. b. Reconstruct Jordan's income statement, assuming that it serves 170 customers when it lures 85 customers away from Munoz 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 Jordan's income statement, assuming that it serves 170 customers when it lures 85 customers away from Munoz by lowering the sales price to $110 per customer. JORDAN COMPANY Sales revenue Variable cost Income Statement Contribution margin Fixed cost 0 Net income (loss) 0