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Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales Variable expenses (80%) Income before interest $1,450,000 1,160,000
Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales Variable expenses (80%) Income before interest $1,450,000 1,160,000 290,000 Interest expense (fixed) 66,000 $ 224,000 Net income Weaver Company Sales $1,450,000 Variable expenses (608) Income before interest Interest expense (fixed) Net income 870,000 580,000 356,000 $ 224,000 Problem 9-5A Part 2 2. What happens to each company's net income if sales increase by 30%. (Rond your answers to nearest whole percent.) Company Miller Co. Weaver Co. Net income % %
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