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Question 1: In a best-case scenario, you might assume that the failure of a troubled competitor early in the fiscal year enables Hearth and Homes to raise its selling prices 8 per cent above its anticipated level. if so, which of the following assumption would be the most reasonable?
Option 1: Cost of goods sold and SG&A expenses decrease as percentage of sale.
Option 2: Both cost of goods sold and SG&A expenses as percentage of sale decrease.
Option 3: Cast of good sold and SG&A expenses both remain constant as percentage of sale.
Option 4: SG&A expenses increase and cost of goods sold decrease as pertange of sale.
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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