Required . Reconstruct Kent's income statement, assuming that it serves 200 customers when it lures 100 customers away from Trent by lowering the sales price to $150 per customer Reconstruct Trent's income statement, assuming that it serves 200 customers when it lures so customers away from Kent by lowering the sales price to $150 per customer e. Explain why the price-cutting strategy increased Kent Company's profits but caused a net Exercise 2-13A Using contribution margin format income statement to measure the The following income statement was drawn from the records of Butler Company, a merchandis- loss for Trent Company magnitude of operating leverage ing firm: ( VC) CM BUTLER COMPANY ncome Statement For the Year Ended December 31, 2014 Sales revenue 02,000 units $275) Cost of goods sold (2,000 units $146) Gross margin Sales commissions (10% of sales) $550,000 (292.000 258,000 (55,000) (80,000) (38,000) 50,000) Shipping and handling expenses (2,000 unitsx $1.50)(3,000) S 32,000 275 1007o Administrative salaries expense Advertising expense Depreciation expense Net income