The following income statements illustrate different cost structures for two competing companies: Number of customers (a)...

 

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The following income statements illustrate different cost structures for two competing companies: Number of customers (a) Sales revenue (a x $230) Variable cost (ax $180) Variable cost (a x $0) Contribution margin Fixed cost Net income Required Income Statements Required A Required B Company Name Thornton 89 $ 20,479 N/A 0 a. Reconstruct Thornton's income statement, assuming that it serves 178 customers when it lures 89 customers away from Stuart by lowering the sales price to $130 per customer. b. Reconstruct Stuart's income statement, assuming that it serves 178 customers when it lures 89 customers away from Thornton by lowering the sales price to $130 per customer. THORNTON COMPANY Income Statement Sales revenue Stuart 89 $ 20,470 (16,020) N/A 4,450 0 Complete this question by entering your answers in the tabs below. 20,470 (16,020) $ 4,450 $ 4,450 Reconstruct Thornton's income statement, assuming that it serves 178 customers when it lures 89 customers away from Stuart 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 Stuart's income statement, assuming that it serves 178 customers when it lures 89 customers away from Thornton by lowering the sales price to $130 per customer. STUART COMPANY Income Statement Sales revenue The following income statements illustrate different cost structures for two competing companies: Number of customers (a) Sales revenue (a x $230) Variable cost (ax $180) Variable cost (a x $0) Contribution margin Fixed cost Net income Required Income Statements Required A Required B Company Name Thornton 89 $ 20,479 N/A 0 a. Reconstruct Thornton's income statement, assuming that it serves 178 customers when it lures 89 customers away from Stuart by lowering the sales price to $130 per customer. b. Reconstruct Stuart's income statement, assuming that it serves 178 customers when it lures 89 customers away from Thornton by lowering the sales price to $130 per customer. THORNTON COMPANY Income Statement Sales revenue Stuart 89 $ 20,470 (16,020) N/A 4,450 0 Complete this question by entering your answers in the tabs below. 20,470 (16,020) $ 4,450 $ 4,450 Reconstruct Thornton's income statement, assuming that it serves 178 customers when it lures 89 customers away from Stuart 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 Stuart's income statement, assuming that it serves 178 customers when it lures 89 customers away from Thornton by lowering the sales price to $130 per customer. STUART COMPANY Income Statement Sales revenue

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a Reconstruct Thorntons income statement Assuming Thornton serves 178 customers at 130 per customer ... View the full answer