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Income Statements for Three Companies Are Provided Below Required:
(A)Prepare New Income Statements for the Firms Assuming Each

Question 135

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Income statements for three companies are provided below: Sales (20 urits)Less variable costsLess fixed costsNet income Company A $1,000600200$200 Company B $1,000300500$200 Company C $1,000800$200\begin{array}{c}\begin{array}{|l|}\hline\\\hline \text {Sales (20 urits)}\\\hline \text {Less variable costs}\\\hline \text {Less fixed costs}\\\hline \text {Net income}\\ \hline \end{array}\begin{array}{l|}\hline\text { Company A }\\\hline\$1,000\\\hline600\\\hline200\\\hline\$200\\\hline \end{array}\begin{array}{l|}\hline\text { Company B }\\\hline\$1,000\\\hline300\\\hline500\\\hline\$200\\\hline\end{array}\begin{array}{l|}\hline\text { Company C }\\\hline\$1,000\\\hline-\\\hline800\\\hline\$200\\\hline\end{array}\end{array}
Required:
(a)Prepare new income statements for the firms assuming each sells one additional unit (i.e.each firm sells 21 units)
(b)Briefly describe the effect of cost s

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