Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the companys fixed

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Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the company’s fixed assets are operating at 90% of capacity.

a. What level of sales could Williamson Industries have obtained if it had been operating at full capacity?

b. What is Williamson’s target fixed assets/sales ratio?

c. If Williamson’s sales increase 15%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio?

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Fundamentals of Financial Management

ISBN: 978-1337395250

15th edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Jan 08, 2019 12:07 PM

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Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the companys fixed

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Sales 7000000000 FA 1944000000 FA are operated at 90 capacity a Full capa...View the full answer

Fundamentals of Financial Management

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