A planner's percentage of sales model forecasts that sales will grow by 20% next year.If costs of goods sold are proportionate at 70% of sales, then costs of goods sold will:

Question

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If sales grow by 20%, and costs of goods sold are proportionate at 70% of those sales, then the costs of goods sold will also grow by 20% in dollar terms, maintaining the same proportion of the new sales amount.

A Planner's Percentage of Sales Model Forecasts That Sales Will