A forecast using a percentage of sales model expects sales to increase by 5% annually over the next 4 years. If all costs are proportional to sales at 80%, and this year's net income is $1,250, the net income in the fourth year will be:
A) $1,447.03.
B) $1,826.15.
C) $1,595.35.
D) $1,519.38.
Correct Answer:
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