6
i
Required Information
Part 2 of 2
[The following Information applies to the questions displayed below.]
Shown here are condensed Income statements for two different companies (assume no Income taxes).
1
points
Miller Company
Sales
$ 1,300,000
Variable expenses (80%)
Income before interest
1,040,000
260,000
Interest expense (fixed)
70,000
eBook
Net income
$ 190,000
Weaver Company
Print
Sales
Variable expenses (60%)
Income before interest
Interest expense (fixed)
$ 1,300,000
780,000
520,000
330,000
References
Net income
$ 190,000
2. What happens to each company's net Income If sales Increase by 20%? (Round your answers to nearest whole percent.)
Company
Net income
Miller Company
Increases by
%
Weaver Company
Increases by
%