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Genco had $725 million of sales last year, and it had $425 million of fixed assets...

Genco had $725 million of sales last year, and it had $425 million of fixed assets that were used at only 72% of capacity. What is the maximum sales growth rate Genco could achieve before it had to increase its fixed assets?

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Answer #1

Sales at full capacity Actual sales/% of capacity used (725/0.72) $ 1,006.94 Additional sales without adding Fixedassets Full

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