Required information

Problem $11-5$A $($Algo$)$ Computing and analyzing times interest earned LO A$1$

$[$The following information applies to the questions displayed below.$]$

Shown here are condensed income statements for two different companies $($assume no income taxes$).$

Problem $11-5$A $($Algo$)$ Part $2$

$2.$ What happens to each company's net income if sales increase by $\backslash (40\backslash \%\backslash )?$

Note: Round your answers to nearest whole percent.