Predicted 2007 operating income for Procter & Gamble
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Will you please answer the following 2 questions step by step from the attachment? The questions are as follows:
1.) Compute the predicted 2007 operating income for Procter & Gamble and its percentage increase.
2.) Explain why the percentage increase in income differs from the percentage increase in sales.
The complete problems are in the form of an attachment.
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Solution Summary
Response provides steps to compute the predicted 2007 operating income for Procter & Gamble and its percentage increase
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1.) Compute the predicted 2007 operating income for Procter & Gamble and its percentage increase.
in $mn Change %Change
2006 2007
Sales 68222 75044 (2006 *1.1)
Cost of product sold 33125 36438 (2006 *1.1)
S,G&A Expense 21848 21848 Fixed
Operating ...
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