When Utilizing the Percentage of Sales Approach,managers

question 60

Multiple Choice

When utilizing the percentage of sales approach,managers:
I.estimate company sales based on a desired level of net income and the current profit margin.
II.consider only those assets that vary directly with sales.
III.consider the current production capacity level.
IV.can project both net income and net cash flows.

• A)I and II only
• B)II and III only
• C)III and IV only
• D)I, III, and IV only
• E)II, III, and IV only

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