Q4. Use the assumptions described in the table when modeling items that are not computed as totals or subtotals, or that are not computed using information available from the model. Variable Modeling assumptions Revenue is expected to grow by 8.73 percent per year in the forecast Revenue period Cost of sales to revenue in each year of forecast period equals average Cost of sales annual ratio from the historical period Fixed indirect costs made up 36.00% of all indirect costs In the last year of the historical period and the remaining indirect costs are considered SG&A and other variable. Fixed indirect costs in each forecast year is expected to be indirect expenses 3.19% higher than the measure from the previous year. The ratio of variable indirect costs to revenue in each forecast period equals the ratio from the previous year. G 2020E . 2021E 1 E 2018A 103,400 -40,300 2017A 94,700 -31,500 F 2019A 117,100 -50,900 2 3 4 A B Income Statement Revenue Cost of Sales Gross Profit Fixed SG&A and other indirect expenses Variable SG&A and other indirect expenses SG&A and other indirect expenses Operating Profit 5 6 7 ?? ?? -48,100 ?? ?? -52,200 ?? ?? -58,974 8 9 10 11 12 13 Q4. Use the assumptions described in the table when modeling items that are not computed as totals or subtotals, or that are not computed using information available from the model. Variable Modeling assumptions Revenue is expected to grow by 8.73 percent per year in the forecast Revenue period Cost of sales to revenue in each year of forecast period equals average Cost of sales annual ratio from the historical period Fixed indirect costs made up 36.00% of all indirect costs In the last year of the historical period and the remaining indirect costs are considered SG&A and other variable. Fixed indirect costs in each forecast year is expected to be indirect expenses 3.19% higher than the measure from the previous year. The ratio of variable indirect costs to revenue in each forecast period equals the ratio from the previous year. G 2020E . 2021E 1 E 2018A 103,400 -40,300 2017A 94,700 -31,500 F 2019A 117,100 -50,900 2 3 4 A B Income Statement Revenue Cost of Sales Gross Profit Fixed SG&A and other indirect expenses Variable SG&A and other indirect expenses SG&A and other indirect expenses Operating Profit 5 6 7 ?? ?? -48,100 ?? ?? -52,200 ?? ?? -58,974 8 9 10 11 12 13