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getsetgo
getsetgo, MBA
Category: Homework
Satisfied Customers: 3486
Experience:  MBA from IIM Calcutta, Engineer, 8+ years of exp. at executive level
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Income statements for three companies are provided below

Customer Question

Income statements for three companies are provided below:

Company A
Company B
Company C

Sales (10 units)
$600
$600
$600

Less variable costs
400
250
0

Less fixed costs
100
250
500

Net income
$100
$100
$100

a) Prepare new income statements for the firms assuming each sells one unit less (i.e. each firm sells 9 units)

b) Briefly - in 150 words or less - describe the effect of cost structure on profitability, including recommendations for each company given the current economic environment, as you understand it.
Submitted: 6 years ago.
Category: Homework
Expert:  getsetgo replied 6 years ago.
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