Question
Edney Manufacturing Company has $2 billion in slaes and $0.6 billion in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity.
Edney Manufacturing Company has $2 billion in slaes and $0.6 billion in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity.
a. What level of sales could Edney have obtained if it had been operating on full capacity?
b. What is Edney's Target fixed assets/Sales ratio?
c. If Edney's sales increase 30%, how large of an increase in fixed assets wil the company need to meet its Target fixed assets/Sales ratio?
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Principles Of Finance With Excel
Authors: Simon Benninga, Tal Mofkadi
3rd Edition
0190296380, 9780190296384
