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Shown here are condensed income statements for two different companies (assume no income taxes) Miller Company Sales $1,450,000 Variable expenses (80%) 1,160,000 Income before interest

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Shown here are condensed income statements for two different companies (assume no income taxes) Miller Company Sales $1,450,000 Variable expenses (80%) 1,160,000 Income before interest 290,000 Interest expense (fixed) 64,000 Net income $ 226,000 Weaver Company Sales Variable expenses (689) Income before interest Interest expense (Fixed) Net income $1,450,000 870,000 580,000 354,000 $ 226,800 Problem 11-5A Part 3 3. What happens to each company's net income if sales increase by 40%? (Round your answers to nearest whole percent.) Net income Company Miller Co Weaver Co % % 4. What happens to each company's net income if sales decrease by 20%? Net income Company Miller Co. % Weaver Co. % 5. What happens to each company's net income if sales decrease by 40%? Net income Company Miller Co Weaver Co % %

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