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Albion Corporation has $550,000 in net fixed assets and is currently operating at 90% capacity. The firm's sales are $1,210,000 and they are forecasted to
Albion Corporation has $550,000 in net fixed assets and is currently operating at 90% capacity. The firm's sales are $1,210,000 and they are forecasted to grow by 15% next year.
a. What is the maximum sales level Albion's net fixed assets can support?
b. What is Albion's target capital intensity ratio?
c. What level of net fixed assets will Albion need to support its projected sales?
d. How much additional net fixed assets will need to be acquired for next year?
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