Hodgkiss Mfg., Inc., is currently operating at only 91 percent of fixed asset capacity. Current sales...

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Hodgkiss Mfg., Inc., is currently operating at only 91 percent of fixed asset capacity. Current sales are $715,000. How fast

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Answer 1

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Answer #1

Maximum sales growth before any new fixed assets are needed=1/current capacity %-1
=1/91%-1
=9.890%

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