Last year Wei Guan Inc. had $625 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity. In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets?
Sales at 100% of capacity= $625/ 0.65
= $961.54
Therefore, sales will have to increase by:
= $961.54 - $625
= $336.54.
In case of any query, kindly comment on the solution.
Last year Wei Guan Inc. had $625 million of sales, and it had $270 million of...
Last year Wei Guan Inc. had $625 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity. In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets?
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