Earleton Manufacturing Company has $2 billion in sales and $500,000,000 in fixed assets. Currently, the company's fixed assets are operating at 85% of capacity.
What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest cent.
$
What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places.
%
If Earleton's sales increase 20%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answer completely. Do not round intermediate calculations. Round your answer to the nearest dollar.
$
a). Full Capacity sales = Actual Sales / % of capacity at which Fixed Assets are operated
= $2,000,000,000 / 0.85 = $2,352,941,176
b). Target Fixed Assets/Sales Ratio = Fixed Assets / Full Capacity Sales
= $500,000,000 / $2,352,941,176 = 0.2125, or 21.25%
c). New Sales = Current Sales * (1 + g) = $2,000,000,000 * (1 + 0.20) = $2,400,000,000
Change in Fixed Assets = Target Fixed Assets/Sales Ratio * Change in Sales
= 0.2125 * [$2,400,000,000 - $2,000,000,000]
= 0.2125 * $400,000,000 = $85,000,000
Earleton Manufacturing Company has $2 billion in sales and $500,000,000 in fixed assets. Currently, the company's fixed...
Earleton Manufacturing Company has $2 billion in sales and $500,000,000 in fixed assets. Currently, the company's fixed assets are operating at 85% of capacity. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest cent. $ What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places. % If Earleton's sales increase 20%, how large of an increase in fixed...
EXCESS CAPACITY Earleton Manufacturing Company has $3 billion in sales and $500,000,000 in fixed assets. Currently, the company's fixed assets are operating at 85% of capacity. a. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest whole number. b. What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places. % C. If Earleton's sales increase 20%, how large...
EXCESS CAPACITY Earleton Manufacturing Company has $2 billion in sales and $500,000,000 in fixed assets. Currently, the company's fixed assets are operating at 75% of capacity. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest whole number. $_______? What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places. =______ % If Earleton's sales increase 40%, how large of...
EXCESS CAРАСІТY Earleton Manufacturing Company has $2 billion in sales and $500,000,000 in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity a. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest whole number b. What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places. c. If Earleton's sales increase 40%, how large of...
Earleton Manufacturing Company has $2 billion in sales and $600,000,000 in fixed assets. Currently, the company's fixed assets are operating at 85% of capacity. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest whole number. $ What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places. % If Earleton's sales increase 40%, how large of an increase in...
Earleton Manufacturing Company has $3 billion in sales and $600,000,000 in fixed assets. Currently, the company's fixed assets are operating at 85% of capacity. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest whole number. $ What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places. % If Earleton's sales increase 30%, how large of an increase in...
a Earleton Manufacturing Company has $2 billion in sales and $600,000,000 in fixed assets. Currently, the company's fixed assets are operating at 85% of capacity. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest whole number. b What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places. c Earleton's sales increase 40%, how large of an increase in...
Earleton Manufacturing Company has $2 billion in sales and $400,000,000 in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest whole number. $ What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places. % If Earleton's sales increase 30%, how large of an increase in...
Earleton Manufacturing Company has $3 billion in sales and $800,000,000 in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest whole number. $ What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places. % If Earleton's sales increase 35%, how large of an increase in...
8. Problem 16.12 EXCESS CAPACITY Earleton Manufacturing Company has $2 billion in sales and $900,000,000 in fixed assets. Currently, the company's fixed assets are operating at 85% of capacity. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest whole number. $ What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places. % If Earleton's sales increase 25%, how large...