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

Essay

Income statements for three companies are provided below:
$\begin{array}{lrrr}&\text { company A }&\text { company B }&\text { company C }\\\text { Sales (20 units) } & \$ 1,000 & \$ 1,000 & \$ 1,000 \\\text { Less variable costs } & 600 & 300 & 0 \\\text { Less fixed costs } & 200 & 500 & 500 \\\text { Jet income } & \$ 200 & \$ 200 & \$ 200\end{array}$
Required:Prepare new income statements for the firms assuming each sells one additional unit (i.e. each firm sells 21 units)Briefly describe the effect of cost structure on profitability.