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UT 5 The following income statements illustrate different cost structures for two competing companies: 1.66 points Income Statements Company Name Solomon Rooney Number of customers (a) 84 84 Sales revenue (a * $200) $ 16,800 $ 16,800 Variable cost (a * $180) N/A (15,120) Variable cost (a * $0) 0 N/A Contribution margin 16,800 1,680 Fixed cost (15,120) 0 Net income $ 1,680 $ 1,680 eBook 101 Hint Required Print a. Reconstruct Solomon's income statement, assuming that it serves 168 customers when it lures 84 customers away from Rooney by lowering the sales price to $100 per customer. b. Reconstruct Rooney's income statement, assuming that it serves 168 customers when it lures 84 customers away from Solomon by lowering the sales price to $100 per customer. References 5 Required a. Reconstruct Solomon's income statement, assuming that it serves 168 customers when it lures 84 customers away from Rooney by lowering the sales price to $100 per customer, b. Reconstruct Rooney's income statement, assuming that it serves 168 customers when it lures 84 customers away from Solomon by lowering the sales price to $100 per customer. 1.66 points Complete this question by entering your answers in the tabs below. eBook Required A Required B Hint Reconstruct Solomon's income statement, assuming that it serves Rooney by lowering the sales price to $100 per customer customers when it lures 84 customers away from Print References SOLOMON COMPANY Income Statement Sales revenue Variable cost Contribution margin $ Fixed cost Net income (lossy 0 Required A Required B > 5 UT Required a. Reconstruct Solomon's income statement, assuming that it serves 168 customers when it lures 84 customers away from Rooney by lowering the sales price to $100 per customer. b. Reconstruct Rooney's income statement, assuming that it serves 168 customers when lures 84 customers away from Solomon by lowering the sales price to $100 per customer. 1.66 points Complete this question by entering your answers in the tabs below. eBook 101 Required A Required B Hint Reconstruct Rooney's income statement, assuming that it serves 168 customers when it lures 84 customers away from Solomon by lowering the sales price to $100 per customer. Print ROONEY COMPANY Income Statement Sales revenue References Variable cost Contribution margin $ 0 Fixed cost Net income (loss) $ 0

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