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Positive Predictions One of Molly’s long-term strategic goals is to increase sales by 30 percent or more in each of the first three years of business. As Molly reviews her projected income statements for the next three years, she knows that she made the “best guess” estimates for both revenue and expenses. Molly believes that she will meet or maybe even exceed her goals.

Calculate Using Figure 18.10 on page 596, calculate what Molly’s projected sales would be in the second and third year if they increased 35 percent from each previous year. How might a 35 percent increase in sales impact Molly’s projected expenses?

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