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 x $230) Variable cost (a $185) Variable cost (a x $0) Contribution margin Fixed cost Net income Company Name Campbell Fanning 84 84 $ 19,320 (15,540) $ 19,320 N/A 19,320 (15,540) $ 3,780 N/A 3,780 B $ 3,780 Required a. Reconstruct Fanning's Income statement, assuming that it serves 168 customers when it lures 84 customers away from Campbell by lowering the sales price to $130 per customer. b. Reconstruct Campbell's Income statement, assuming that it serves 168 customers when it lures 84 customers away from Fanning by lowering the sales price to $130 per customer. Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Fanning's income statement, assuming that it serves 168 customers when it lures 84 customers away from Campbell by lowering the sales price to $130 per customer. FANNING COMPANY Income Statement Sales revenue Variable cost Contribution margin S 0 Fixed cost Net income (loss) S 0 Required A Required B >