The percent-of-sales method to prepare a pro forma income statement assumes a firm has no fixed...

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The percent-of-sales method to prepare a pro forma income statement assumes a firm has no fixed costs. Therefore, the use of the past cost and expense ratios generally tends to profits when sales are increasing. OA. accurately predict OB. understate OC. overstate OD. have no effect on The percent-of-sales method to prepare a pro forma income statement assumes a firm has no fixed costs. Therefore, the use of the past cost and expense ratios generally tends to profits when sales are increasing. OA. accurately predict OB. understate OC. overstate OD. have no effect on