In the three statement modeling example, which of the following is the primary method used to estimate projected cost of goods sold?

Based on the projected gross margins, which represent the percentage of revenue that remains after deducting the cost of goods sold.

By applying the long$-$term average historical cost of goods sold as a percentage of revenue to the revenue for each future period.

By estimating the future production costs, including raw materials, labor, and overhead expenses, based on the projected sales volume.

By assuming a fixed dollar amount for cost of goods sold, regardless of changes in revenue or sales volume.