Question

Mann Custom Motors had $375,000 in sales last year and the owner estimates that they were at 90 percent of their total capacity What is the maximum amount of sales they can have without increasing fixed assets? Round to the nearest whole number and no commas. Answer:

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Answer #1

If sales last year was $375,000 on 90% capacity, then on 100% capacity sales would be:

=$375,000 / 90%

=$416,666.67 or 416667

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