4. Excess capacity adjustments Monk Consortium Corp. (Monk-Con) currently has $540,000 in total assets and sales of $1,400,000. Half of Monk-Con's total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 22% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is Monk-Con was using its fixed assets at only 96% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets? O $1,458,333 $1,604,166 $1,750,000 $1,166,666 When you consider that Monk-Con's fixed assets were being underused, its target fixed assets to sales ratio should be When you consider that Monk-Con's fixed assets were being underused, how much fixed assets must Monk-Con raise to support its expected sales for next year? O $55,469 O $50,846 O $46,224 O $36,979