Last year Baron Enterprises had $400 million of sales, and it had $270 million of fixed...
Last year Baron Enterprises had $400 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity last year. In millions, by how much could Baron's sales increase before it is required to increase its fixed assets?
Homework Answers
ANSWER:
GIVEN DATA
SALES $400M
CAPACITY = 65%
there fore
capacity is 400/65%
400*100/65
=$615.38M
NOW THE INCREASED SALES ARE
=full capacity-actual sales
=615.38-400
=$215.38M
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