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Firm X made $500 in sales with $1,200 in fixed assets. Suppose the firm had been operating at 75% of fixed asset capacity. If the
Firm X made $500 in sales with $1,200 in fixed assets. Suppose the firm had been operating at 75% of fixed asset capacity. If the firm can increase operating capacity to 85%, how much more in fixed assets would the firm need to achieve $650 in sales?
a. $150.000 |
b. | $176.471 |
c. | $218.182 |
e. | $360.000 |
f. | No additional fixed assets required. |
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