Shown here are condensed income statements for two

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

Ace Company
Sales $500,000
Variable expenses (80%) 400,000
Income before interest 100,000
Interest expense (fixed) 30,000
Net income $70,000

Deuce Company
Sales $500,000
Variable expenses (60%) 300,000
Income before interest 200,000
Interest expense (fixed) 130,000
Net income $ 70,000

What happens to each company's net income if sales increase by 50%?

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Shown here are condensed income statements for two : shown here are condensed income statements for two different companies both are organized as llcs and pay no income

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