1. (Percentage of salesincome statement) Using the percentage-of-sales method, forecast the income statement of a company with the following data: Sales last year $8,000,000 Variable expenses: Cost of goods sold $4,800,000 Operating expense $1,760,000 Fixed operating expense $ 750,000 Interest bearing debt: Average balance next year $2,500,000 Average interest rate next year 10% Tax rate 35% If the company's sales forecast for the coming year is: B. $8,800,000 c. $10,000,000