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Broussard Skateboard's sales are expected to increase by 25% from $7.0 million in 2018 to $8.75 million in 2019. Its assets totaled $4 million at
Broussard Skateboard's sales are expected to increase by 25% from $7.0 million in 2018 to $8.75 million in 2019. Its assets totaled $4 million at the end of 2018 . Assume that the company's year-end 2018 assets had been $5 million. Is the company's "capital intensity" ratio the same or different? The capital intensity ratio is measured as A0/S0. Broussard's current capital intensity ratio is that of the firm with $5 million year-end 2018 assets; therefore, Broussard is capital intensive - it would require increase in total assets to support the increase in sales. Broussard Skateboard's sales are expected to increase by 25% from $7.0 million in 2018 to $8.75 million in 2019. Its assets totaled $4 million at the end of 2018 . Assume that the company's year-end 2018 assets had been $5 million. Is the company's "capital intensity" ratio the same or different? The capital intensity ratio is measured as A0/S0. Broussard's current capital intensity ratio is that of the firm with $5 million year-end 2018 assets; therefore, Broussard is capital intensive - it would require increase in total assets to support the increase in sales
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