Required information 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.] There are condensed income statements for two different companies (assume no income taxes).

Times interest earned for Miller Company and Weaver Company. Choose Numerator: / Choose Denominator: = Times interest earned Income before interest and taxesselected answer correct / Interest expenseselected answer correct = Times interest earned $270,000selected answer correct / $62,000selected answer correct = 4.35 $540,000selected answer correct / $332,000selected answer correct = 1.63

Miller Company
Sales	$ 1,350,000
Variable expenses (80%)	1,080,000
Income before interest	270,000
Interest expense (fixed)	62,000
Net income	$ 208,000

Weaver Company
Sales	$ 1,350,000
Variable expenses (60%)	810,000
Income before interest	540,000
Interest expense (fixed)	332,000
Net income	$ 208,000

With explantion

2. What happens to each company's net income if sales increase by 40%? (Round your answers to the nearest whole percent.)

Company Net income Miller Company Increases by % =?

Weaver Company Increases by %=?

Problem 11-5A (Algo) Part 3

3. What happens to each company's net income if sales increase by 50%?(Round your answers to the nearest whole percent.) Company Net income Miller Company Increases by % =?

Weaver Company Increases by % =?