Answer: Fresno Salads' pro forma net income is $405.60
The firm's sales is expected to grow at 4% next year.
So, its expected sales next year are [tex]6000 * 1.04 = 6240[/tex].
The question states that all costs vary directly with sales. This means that the proportion of each cost to sales remains constant, irrespective of the sales number.
This also means that the profit margin will remain the same i.e.6.5% next year.
So, the pro forma net income will be [tex]6240 * 0.065 = 405.60[/tex]
