y how much could Baron's sales increase before it is required to increase its fixed assets?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 6P
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Last year Baron Enterprises had $700 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity last year. In millions, by how much could Baron's sales increase before it is required to increase its fixed assets?

Select the correct answer.

  a. $376.9  
  b. $383.9  
  c. $397.9  
  d. $390.9  
  e. $362.9
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