The following income statements illustrate different cost structures for two competing companies: Number of customers (a) Sales revenue (ax $250) Variable cost (ax $190) Contribution margin Fixed cost Net income Income Statements Company Name Benson 82 $20,500 N/A 20,500 (15,580) $4,920 Required a. Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird by lowering the sales price to $150 per customer. BENSON COMPANY Income Statement Sales revenue Variable cost Contribution margin b. Reconstruct Baird's income statement, assuming that it serves 164 customers when it lures 82 customers away from Benson by lowering the sales price to $150 per customer. Fixed cost Net income (loss) Baird 82 $20,500 (15,580) 4,920 0 $4,920 Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird by lowering the sales price to $150 per customer. < Required A Required B >
The following income statements illustrate different cost structures for two competing companies: Number of customers (a) Sales revenue (ax $250) Variable cost (ax $190) Contribution margin Fixed cost Net income Income Statements Company Name Benson 82 $20,500 N/A 20,500 (15,580) $4,920 Required a. Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird by lowering the sales price to $150 per customer. BENSON COMPANY Income Statement Sales revenue Variable cost Contribution margin b. Reconstruct Baird's income statement, assuming that it serves 164 customers when it lures 82 customers away from Benson by lowering the sales price to $150 per customer. Fixed cost Net income (loss) Baird 82 $20,500 (15,580) 4,920 0 $4,920 Complete this question by entering your answers in the tabs below. Required A Required B Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird by lowering the sales price to $150 per customer. < Required A Required B >
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 6PB: Using the information for Lighthizer Trading Company, prepare the income statement to include all...
Related questions
Question
![The following income statements illustrate different cost structures for two competing companies:
Number of customers (a)
Sales revenue (ax $250).
Variable cost (ax $190)
Contribution margin
Fixed cost
Net income
Income Statements
Company Name
BENSON COMPANY
Income Statement
Sales revenue
Vanable cost
Benson
82
$20,500
N/A
20,500
(15,580)
$4,920
Required
a. Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird by
lowering the sales price to $150 per customer.
b. Reconstruct Baird's income statement, assuming that it serves 164 customers when it lures 82 customers away from Benson by
lowering the sales price to $150 per customer.
Contribution margin
Fixed cost
Net income (loss)
Complete this question by entering your answers in the tabs below.
Baird
82
$20,500
(15,580)
4,920
0
$4,920
Required A Required B
Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird
by lowering the sales price to $150 per customer.
<Required A
Required B >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6df952b7-7a2b-4b03-b6ab-474e16f6f495%2F808f363d-8ce6-45c9-af2e-427959cb69d8%2Fp0nh9s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following income statements illustrate different cost structures for two competing companies:
Number of customers (a)
Sales revenue (ax $250).
Variable cost (ax $190)
Contribution margin
Fixed cost
Net income
Income Statements
Company Name
BENSON COMPANY
Income Statement
Sales revenue
Vanable cost
Benson
82
$20,500
N/A
20,500
(15,580)
$4,920
Required
a. Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird by
lowering the sales price to $150 per customer.
b. Reconstruct Baird's income statement, assuming that it serves 164 customers when it lures 82 customers away from Benson by
lowering the sales price to $150 per customer.
Contribution margin
Fixed cost
Net income (loss)
Complete this question by entering your answers in the tabs below.
Baird
82
$20,500
(15,580)
4,920
0
$4,920
Required A Required B
Reconstruct Benson's income statement, assuming that it serves 164 customers when it lures 82 customers away from Baird
by lowering the sales price to $150 per customer.
<Required A
Required B >
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