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Assume that the company was operating at full capacity in 2019 with regard to all items except fixed assets (operating rooms and support space); fixed

Assume that the company was operating at full capacity in 2019 with regard to all items except fixed assets (operating rooms and support space); fixed assets in 2019 were utilized to only 75 percent of capacity. How much would the 2020 revenues be if the fixed assets are utilized at 100%?

Operating costs $30,783
Earnings before interest and taxes $5,217
Interest $1,017
Earnings before taxes $4,200
Taxes (21%) $1,680
Net income $2,520
Dividends (60%) $1,512
Addition to retained earnings $1,008

$48,000

$66,000

$42,000

$44,540

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