Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Earleton Manufacturing Company has $ 2 billion in sales and $ 8 2 5 , 0 0 0 , 0 0 0 in fixed assets.
Earleton Manufacturing Company has $ billion in sales and $ in fixed assets. Currently, the company's fixed assets are operating at of capacity.
a What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answers completely. For example, million should be entered as Round your answer to the nearest dollar.
$
b What is Earleton's target fixed assetssales ratio? Do not round intermediate calculations. Round your answer to two decimal places.
c If Earleton's sales increase how large of an increase in fixed assets will the company need to meet its target fixed assetssales ratio? Write out your answer completely, Do not round intermediate calculations. Round your answer to the nearest dollar.
$
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started