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A company is operating at 8 0 % fixed asset capacity. Currently sales are GH 5 0 0 , 0 0 0 . 0 0

A company is operating at 80% fixed asset capacity. Currently sales are GH500,000.00 and fixed assets are GH400,000.00. If the company wants to grow sales to GH700,000.00, compute the full capacity sales of fixed assets and determine how much in new fixed assets is required to support this growth?
A) Full capacity sales of fixed assets is 700,000 and new fixed assets needed is 50,000.
B) Full capacity sales of fixed assets is 600,000 and new fixed assets needed is 80,000
C) Full capacity sales of fixed assets is 625,000 and new fixed assets needed is 48,000
D) Full capacity sales of fixed assets is 600,000 and new fixed assets needed is 48,000
12) At the internal growth rate, the external financing needed is calculated as
A) EFN=A(g)-p(S)R(1+g)-p(S)Rx(1+g)[DE]
B) EFN=ROER1-(ROExR)
C) EFN=0
D) None of the above
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