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Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales $ 1,150,000 Variable expenses (80%) 920,000 Income before

Shown here are condensed income statements for two different companies (assume no income taxes).

Miller Company
Sales $ 1,150,000
Variable expenses (80%) 920,000
Income before interest 230,000
Interest expense (fixed) 66,000
Net income $ 164,000
Weaver Company
Sales $ 1,150,000
Variable expenses (60%) 690,000
Income before interest 460,000
Interest expense (fixed) 296,000
Net income $ 164,000

2. What happens to each company's net income if sales increase by 50%?

Note: Round your answers to nearest whole percent.

4. What happens to each company's net income if sales decrease by 20%?

Note: Round your answers to nearest whole percent.

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