Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5. EXCESS CAPACITY Williamson Industries has $3 billion in sales and $2 billion in fixed assets. Currently, the company's fixed assets are operating at 95%

5. EXCESS CAPACITY

Williamson Industries has $3 billion in sales and $2 billion in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity.

  1. What level of sales could Williamson Industries have obtained if it had been operating at full capacity? Write out your answer completely. For example, 25 billion should be entered as 25,000,000,000. Round your answer to the nearest cent. $
  2. What is Williamson's target fixed assets/sales ratio? Round your answer to two decimal places. %
  3. If Williamson's sales increase 9%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answer completely. For example, 25 billion should be entered as 25,000,000,000. Round your answer to the nearest cent. Negative amount should be indicated by a minus sign. Do not round intermediate calculations. $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

8th Edition

0077606779, 978-0697789945

More Books

Students also viewed these Finance questions

Question

Did the 21st century begin on January 1, 2000?

Answered: 1 week ago

Question

What language or languages are spoken in your home?

Answered: 1 week ago