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Seashell Mfg., Inc. had $750 million of sales last year, and it had $435 million of...

Seashell Mfg., Inc. had $750 million of sales last year, and it had $435 million of fixed assets that were used at only 65% of capacity. What is the maximum sales growth rate Seashell could achieve before it had to increase its fixed assets?

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Answer #1
Full capacity sales = Actual sales / Percentage of capacity at which fixed assets were operated
=$750/0.65
=$1153.85
Growth rate in sales = ($1153.85-750)/750
=53.85%
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