Ask Question
11 June, 00:24

Fresno Salads has current sales of $6,000 and a profit margin of 6.5 percent. The firm estimates that sales will increase bu 4 percent next year and that costs will vary in direct relationship to sales. What is the pro forma net income?

A. 303.33

B. 327.18

C. 405.60

D. 438.70

E. 441.10

+1
Answers (1)
  1. 11 June, 00:52
    0
    Option "C" is the correct answer to the following statement.

    Explanation:

    Given:

    Current Sales = $6,000

    Profit margin = 6.5%

    Estimated increase in sales = 4%

    Computation of future sale:

    New Sales = $6,000 + 4% of $6,000

    = $6,000 + $240

    New Sales = $6,240

    Pro forma net income = Profit margin x New sale

    = 6.5% x $6,240

    = 405.60

    Pro forma net income is estimated or forecast income for the next year.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Fresno Salads has current sales of $6,000 and a profit margin of 6.5 percent. The firm estimates that sales will increase bu 4 percent next ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers