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Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes). Ace Company Sales $500,000 Variable
Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes). Ace Company Sales $500,000 Variable expenses (80%) 400,000 Income before interest 100,000 Interest expense (fixed) 30,000 Net income $70,000 Deuce Company Sales $500,000 Variable expenses (60%) 300,000 Income before interest 200,000 Interest expense (fixed) 130,000 Net income $ 70,000 (state whether it increases or decreases and by what % for each company) What happens to each company's net income if sales increase by 50%? (Round your answers to the nearest percentage. Omit the "%" sign in your response.) Ace Co.- ? Deuce Co
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