A percentage of sales model projects sales to increase by 5% annually over the next 4 years.If costs are forecast at a constant 80% of sales,and this year's income is $1,250,the forecast income in the fourth year will be:

Name: A percentage of sales model projects sales to increase by 5% annually over the next 4 years.If costs are forecast at a constant 80% of sales,and this year's income is $1,250,the forecast income in the fourth year will be:
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Question

Quizplus · Accepted Answer

Net income_Year₄ = $1,250 × (1 + 0.05)⁴ = $1,519.38

A Percentage of Sales Model Projects Sales to Increase by 5