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

Miller Company:

Sales: $1,200,000

Variable expenses (80%): 960,000

Income before interest: 240,000

Interest expense (fixed): 60,000

Net income: $180,000

Weaver Company:

Sales: $1,200,000

Variable expenses (60%): 720,000

Income before interest: 480,000

Interest expense (fixed): 300,000

Net Income: $180,000

1. Compute times interest earned for Miller Company and for Weaver Company.

2. What happens to each company's net income if sales increase by 40%?

Note: Round your answers to nearest whole percent.

3. 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 10%?

Note: Round your answers to the nearest whole percent.

5. What happens to each company's net income if sales decrease by 30%?

Note: Round your answers ro nearest whole percent.

6. Which comapny would have a greater ability to oay interest expense if sales were to decrease?

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 $ 1,200,000 960,000 240,000 60,000 $ 180,000 Weaver Company Sales $ 1,200,000 Variable expenses (60%)) 720,000 Income before interest 480,000 Interest expense (fixed) Net income 300,000 $ 180,000 Required: 1. Compute times interest earned for Miller Company and for Weaver Company. Times interest earned for Miller Company and Weaver Company, Choose Numerator: Choose Denominator: Times interest earned Times interest earned 0 0 Check my work