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1 $2,000,000,000.00 $600,000,000.00 75.00% 1 Excess capacity 2 3 Sales 4 Fixed assets 5 % Fixed assets capacity 6 7 Cacluation of Full Capacity Sales:

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1 $2,000,000,000.00 $600,000,000.00 75.00% 1 Excess capacity 2 3 Sales 4 Fixed assets 5 % Fixed assets capacity 6 7 Cacluation of Full Capacity Sales: 8 Full capacity sales 9 10 Calculation of Target Fixed Assets-to-Sales Ratio: 11 Target fixed assets-to-sales ratio 12 13 % Sales increase 14 15 Calculation of Fixed Assets Increase Needed: 16 New sales level 17 Increase in fixed assets 18 19 20 35.00%

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