Required information
Problem 11-5A (Algo) Computing and analyzing times interest earned LO A1
[The following information applies to the questions displayed below.]
Shown here are condensed income statements for two different companies (assume no income taxes).
Sales
Miller Company
Variable expenses (80%)
$1,350,000
1,080,000
270,000
Income before interest
Interest expense (fixed)
Net income
64,000
$206,000
Weaver Company
Sales
$1,350,000
Variable expenses (60%)
810,000
Income before interest
540,000
Interest expense (fixed)
Net income
334,000
$206,000
Problem 11-5A (Algo) Part 2
2. What happens to each company's net income if sales increase by 30%?
Note: Round your answers to nearest whole percent.