Question
Required information Problem 9-5A Computing and analyzing times interest earned LO A1 [The following information applies to the questions displayed below.] Shown here are condensed
Required information Problem 9-5A Computing and analyzing times interest earned LO A1 [The following information applies to the questions displayed below.] Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales $ 1,000,000 Variable expenses (80%) 800,000 Income before interest 200,000 Interest expense (fixed) 60,000 Net income $ 140,000 Weaver Company Sales $ 1,000,000 Variable expenses (60%) 600,000 Income before interest 400,000 Interest expense (fixed) 260,000 Net income $ 140,000 Problem 9-5A Part 5 5. What happens to each companys net income if sales decrease by 40%? (Round your answers to nearest whole percent.) Please put it into a percentage and explain how to find the answer.
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