Question
EXCESS CAPICITY: Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the companys fixed assets are operating at 90% of
EXCESS CAPICITY: Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the companys fixed assets are operating at 90% of capacity.
a. What level of sales could Williamson Industries have obtained if it had been operating at full capacity?
b. What is Williamsons target fixed assets/sales ratio?
c. If Williamsons sales increase 15%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio?
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Risk Management And Financial Institutions
Authors: John C. Hull
3rd Edition
1118269039, 9781118269039
