Required information

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

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Shown here are condensed income statements for two different companies (both are organized as LLCs and pay no income taxes).

Miller Company Sales Variable expenses (80%) Income before interest Interest expense (fixed) Net income $2,000,000 1,600,000 400,000 220,000 180,000 Weaver Company Sales Variable expenses (60%) Income before interest Interest expense (fixed) Net income $2,000,000 1,200,000 800,00e 620,000 $ 180,000