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

question 102

Essay

Income statements for three companies are provided below:
$\begin{array}{lccc}& \text { Company A } & \text { Company B } & \text { Company C } \\\text {Sales (20 units)}& \$ 1,000& \$ 1,000& \$ 1,000\\\text {Less variable costs}& 600 & 300 &- \\\text {Less fixed costs}& 200 & 500 & 800 \\ \text {Net income}&\$200 & 200 & \$200 \\\end{array}$ 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 structure on profitability.

Evaluate the impact of changing output levels on marginal and average costs.

Recognize the relationship between the marginal product of labor and marginal cost.

Apply cost analysis to decision-making in competitive market scenarios.

Understand the social construction of sexuality and how it varies across time and culture.

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Definitions:

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, indicating how fast prices are rising.

Canadian Dollar

The official currency of Canada, symbolized as CAD and often considered a commodity currency due to Canada's significant natural resource exports.