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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

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) 72,000
Net income $ 168,000

Weaver Company
Sales $ 1,200,000
Variable expenses (60%)

720,000

Income before interest 480,000
Interest expense (fixed) 312,000
Net income

$ 168,000

Problem 11-5A (Algo) Part 3

3. What happens to each company's net income if sales increase by 60%? (Round your answers to nearest whole percent.)

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3. What happens to each company's net income if sales increase by 60% ? (Round your answers to nearest whole percent.)

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