Answer:
False. The first step in preparing a pro forma income statement is typically not to separate fixed and variable costs. The initial step usually involves forecasting or estimating the sales revenue for the period in question. Once you have the estimated sales revenue, you can then consider the associated costs, including fixed and variable costs, to calculate the projected income or profit. Separating fixed and variable costs usually comes later in the process, as you analyze the cost structure and determine how changes in sales volume may affect costs.
Step-by-step explanation: