For firms with high fixed costs, the percent-of-sales approach ...

[Mr3Hunna]

For firms with high fixed costs, the percent-of-sales approach for preparing a pro forma income statement tends to ________.
 
  A) overestimate profits when sales are increasing
  B) underestimate profits when sales are increasing
  C) underestimate profits when assets are increasing
  D) overestimate profits when assets are increasing

Question 2

If you can earn 5.25 per year on your investments, how long will it take to double your money?
 
  A) 6.31 years
  B) 19.05 years
  C) 13.55 years
  D) There is not enough information to answer this question.

[blfontai]

Answer to Question 1

B

Answer to Question 2

Answer: C
Explanation: C) n = = = 13.55 years
MODE = END
INPUT ? 5.25 -1 0 2
KEY N I/Y PV PMT FV
CPT 13.55