A Forecast Using a Percentage of Sales Model Expects Sales

question 118

Multiple Choice

A forecast using a percentage of sales model expects sales to increase by 5% over each of the next four years.If costs are proportional to sales at 80%, and last year's sales were $1,000, the net income in the fourth year will be:

• A)$48.62
• B)$145.86
• C)$227.60
• D)$243.10

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Definitions:

Reflecting

The process of thinking deeply or carefully about something, often used as a technique in counseling to understand and empathize with clients.

Blood Sugar

The concentration of glucose in the blood, an important indicator of metabolic health, particularly in the management of diabetes.

Frustrated

The feeling of being upset or annoyed, especially because of inability to change or achieve something.

Affirmation

A statement or action that validates someone's feelings, thoughts, or beliefs, often used in counseling to build self-esteem and encourage positive change.