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(80%) erest (fixed) er Company 1,080,00 270,00 64,00 $ 206,00

(80%) erest (fixed) er Company 1,080,00 270,00 64,00 $ 206,00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information [The following information applies to the questions displayed below.] Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales Variable expenses (80%) Income before interest Interest expense (fixed) Net income Weaver Company Sales Variable expenses (60%) Income before interest Interest expense (fixed) Net income Company Miller Company Weaver Company $1,350,000 1,080,000 Net income 270,000 64,000 $206,000 2. What happens to each company's net income if sales increase by 40 % ? (Round your answers to nearest whole percent.) $1,350,000 810,000 540,000 334,000 $ 206,000 % %
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Shown here are condensed income statements for two different companies (assume no income taxes). Miller Company Sales Variable expenses (80%) Income before interest Interest expense (fixed) Net income Weaver Company Sales Variable expenses (60%) Income before interest Interest expense (fixed) Net income Company Miller Company Weaver Company $1,350,000 1,080,000 Net income 270,000 64,000 $206,000 2. What happens to each company's net income if sales increase by 40 % ? (Round your answers to nearest whole percent.) $1,350,000 810,000 540,000 334,000 $ 206,000 % %
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