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! Required information [The following information applies to the questions displayed below.) Shown here are condensed income statements for two different companies (assume no income
! Required information [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 Variable expenses (80%) Income before interest Interest expense (fixed) Net income $1,000,000 800,000 200,000 60,000 $ 140,000 Weaver Company Sales Variable expenses (60%) Income before interest Interest expense (fixed) Net income $1,000,000 600,000 400,000 260,000 $ 140,000 5. What happens to each company's net income if sales decrease by 40%? (Round your answers to nearest whole percent.) Net Income Company Miller Co. Weaver Co. % %
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