A Forecast Using a Percentage of Sales Model Expects Sales

question 72

Multiple Choice

A forecast using a percentage of sales model expects sales to increase by 5% annually over the next 4 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:

Business Strategy

A plan or approach adopted by an organization to achieve its goals and secure a competitive advantage.

Needs Analysis

The process of identifying and evaluating the needs of a business or organization to improve its efficiency and performance.

Task Analysis

The process of breaking down a task into its component steps or actions to understand the knowledge, skills, and abilities required to perform it effectively.

Mental Processes

The internal cognitive activities that encompass thinking, reasoning, and understanding.