A company reported annual sales of $498,637 operating at 87.33% capacity. Fixed assets are worth $1,560,440. How much in new assets would the company need in order to increase sales to $800,000 if it maintaned current capacity? What new assets would be needed to reach $800,000 in sales if capacity was increased to 100%?

A company reported annual sales of $498,637 operating at 87.33% capacity. Fixed assets are worth $1,560,440. How much in new assets would the company need in order to increase sales to $800,000 if it maintaned current capacity? What new assets would be needed to reach $800,000 in sales if capacity was increased to 100%?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter16: Financial Planning And Control

Section: Chapter Questions

Problem 4PROB

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