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Problem 11-5A (Algo) Computing and analyzing times interest earned LO A1

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[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	$ 1,250,000
Variable expenses (80%)	1,000,000
Income before interest	250,000
Interest expense (fixed)	70,000
Net income	$ 180,000

Weaver Company
Sales	$ 1,250,000
Variable expenses (60%)	750,000
Income before interest	500,000
Interest expense (fixed)	320,000
Net income	$ 180,000

Problem 11-5A (Algo) Part 3

3. What happens to each company's net income if sales increase by 60%? (Round your answers to nearest whole percent.)