Company Analysis: Forecasting sample question
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Company Analysis: Forecasting
A company reports current revenue of USD 1,200 million. For next year, an analyst forecasts unit volume growth of 5% and price growth of 3%. Cost of goods sold is forecast at 55% of revenue, variable selling costs at 10% of revenue, and fixed administrative costs at USD 300 million. Next year's forecast operating profit is closest to:
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