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Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes). Miller Company Sales $ 1,100,000

Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes).

Miller Company
Sales $ 1,100,000
Variable expenses (80%)

880,000

Income before interest 220,000
Interest expense (fixed) 72,000
Net income $

148,000

Weaver Company
Sales $ 1,100,000
Variable expenses (60%)

660,000

Income before interest 440,000
Interest expense (fixed) 292,000
Net income $

148,000

1. Compute times interest earned for Miller Company. 2. Compute times interest earned for Weaver Company. 3. What happens to each company's net income if sales increase by 50%. (Round your answers to nearest whole percent.) 4. What happens to each company's net income if sales increase by 60%? (Round your answers to nearest whole percent.) 5. What happens to each company's net income if sales increase by 90%? (Round your answers to nearest whole percent.) 6. What happens to each company's net income if sales decrease by 20%? (R . What happens to each company's net income if sales decrease by 30%? (Round your answers to nearest whole percent.) 8. What happens to each company's net income if sales decrease by 40%?

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