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(A): Full Capacity Sales: Hodgkiss Mfg. Inc. is currently operating at only 91% of fixed asset capacity. Current sales are $715,000. How fast can sales
(A): Full Capacity Sales: Hodgkiss Mfg. Inc. is currently operating at only 91% of fixed asset capacity. Current sales are $715,000. How fast can sales grow before any new fixed assets are needed?
(B): Using the financial details from problem above, how many $ of new fixed assets are needed to reach $1,000,000 sales if the company has $2,500,000 in fixed assets? If Hodgkiss Mfg. wants to stay at 91% operating capacity, how many $ of new assets will be needed to reach $1,000,000 in sales?
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