The following income statements Illustrate different cost structures for two competing companies: Number of customers (a) Sales revenue (a × $220) Variable cost (ax $180) Contribution margin Fixed cost Net income Required Income Statements Required A Required B a. Reconstruct Rundle's Income statement, assuming that it serves 172 customers when it lures 86 customers away from Perez by lowering the sales price to $120 per customer. b. Reconstruct Perez's Income statement, assuming that it serves 172 customers when It lures 86 customers away from Rundle by lowering the sales price to $120 per customer. PEREZ COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) Complete this question by entering your answers in the tabs below. $ Company Name Reconstruct Perez's income statement, assuming that it serves 172 customers when it lures 86 customers away from Rundle by lowering the sales price to $120 per customer. $ Rundle 86 $18,920 N/A 18,920 (15,480) $3,440 0 0 Perez 86 $18,920 (15,480) 3,440 0 $3,440 < Required A Required B >
The following income statements Illustrate different cost structures for two competing companies: Number of customers (a) Sales revenue (a × $220) Variable cost (ax $180) Contribution margin Fixed cost Net income Required Income Statements Required A Required B a. Reconstruct Rundle's Income statement, assuming that it serves 172 customers when it lures 86 customers away from Perez by lowering the sales price to $120 per customer. b. Reconstruct Perez's Income statement, assuming that it serves 172 customers when It lures 86 customers away from Rundle by lowering the sales price to $120 per customer. PEREZ COMPANY Income Statement Sales revenue Variable cost Contribution margin Fixed cost Net income (loss) Complete this question by entering your answers in the tabs below. $ Company Name Reconstruct Perez's income statement, assuming that it serves 172 customers when it lures 86 customers away from Rundle by lowering the sales price to $120 per customer. $ Rundle 86 $18,920 N/A 18,920 (15,480) $3,440 0 0 Perez 86 $18,920 (15,480) 3,440 0 $3,440 < Required A Required B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:The following income statements Illustrate different cost structures for two competing companies:
Number of customers (a)
Sales revenue (a × $220)
Variable cost (ax $180)
Contribution margin
Fixed cost
Net income
Required
Income Statements
Required A
a. Reconstruct Rundle's income statement, assuming that it serves 172 customers when it lures 86 customers away from Perez by
lowering the sales price to $120 per customer.
Required B
b. Reconstruct Perez's Income statement, assuming that it serves 172 customers when It lures 86 customers away from Rundle by
lowering the sales price to $120 per customer.
Complete this question by entering your answers in the tabs below.
PEREZ COMPANY
Income Statement
Sales revenue
Variable cost
Contribution margin
Fixed cost
Net income (loss)
Company Name
$
Rundle
86
$18,920
N/A
18,920
(15,480)
$3,440
Reconstruct Perez's income statement, assuming that it serves 172 customers when it lures 86 customers away from Rundle
by lowering the sales price to $120 per customer.
$
0
Perez
86
$18,920
(15,480)
3,440
0
$3,440
0
< Required A
Required B >
Transcribed Image Text:The following income statements illustrate different cost structures for two competing companies:
Number of customers (a)
Sales revenue (a × $220)
Variable cost (a × $180)
Contribution margin
Fixed cost
Net income
Required
Income Statements
Required A
Required B
a. Reconstruct Rundle's income statement, assuming that it serves 172 customers when it lures 86 customers away from Perez by
lowering the sales price to $120 per customer.
b. Reconstruct Perez's income statement, assuming that it serves 172 customers when it lures 86 customers away from Rundle by
lowering the sales price to $120 per customer.
Complete this question by entering your answers in the tabs below.
RUNDLE COMPANY
Income Statement
Sales revenue
Variable cost
Contribution margin
Fixed cost
Net income (loss)
$
Company Name
Reconstruct Rundle's income statement, assuming that it serves 172 customers when it lures 86 customers away from Perez
by lowering the sales price to $120 per customer.
$
Rundle
86
$18,920
N/A
18,920
(15,480)
$3,440
0
0
Perez
86
$18,920
(15,480)
3,440
0
$3,440
< Required A
Required B >
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