The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name...

 

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The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Walton 90 Number of customers (a) Sales revenue (a x $210) Variable cost (a x $185) Variable cost (a x $0) Contribution margin Fixed cost Net income Vernon 90 $ 18,900 N/A e $ 18,900 (16,650) N/A 18,900 (16,650) 2,250 0 $ 2,250 S 2,250 Required a. Reconstruct Walton's income statement, assuming that it serves 180 customers when it lures 90 customers away from Vernon by lowering the sales price to $110 per customer. b. Reconstruct Vernon's income statement, assuming that it serves 180 customers when it lures 90 customers away from Walton 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 Walton's income statement, assuming that it serves 180 customers when it lures 90 customers away from Vernon by lowering the sales price to $110 per customer. WALTON COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) S 10 Required A Required B > The following income statements illustrate different cost structures for two competing companies: Income Statements Company Name Walton 90 Number of customers (a) Sales revenue (a x $210) Variable cost (a x $185) Variable cost (a x $0) Contribution margin Fixed cost Net income Vernon 90 $ 18,900 N/A e $ 18,900 (16,650) N/A 18,900 (16,650) 2,250 0 $ 2,250 S 2,250 Required a. Reconstruct Walton's income statement, assuming that it serves 180 customers when it lures 90 customers away from Vernon by lowering the sales price to $110 per customer. b. Reconstruct Vernon's income statement, assuming that it serves 180 customers when it lures 90 customers away from Walton 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 Walton's income statement, assuming that it serves 180 customers when it lures 90 customers away from Vernon by lowering the sales price to $110 per customer. WALTON COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) S 10 Required A Required B >