+ H ezto.inheducatimmcom Check my Work mode : This shows what is correct The discussion of EFN in the chapter lmplicltly assumed that the company was operating at full capacity. Often, this is not the case. Assume that Rosengarten was operating at 90 percent capacity. Full capacity sales would be $1,000L90 = $1,111. The balance sheet shows $1,800 in fixed assets. The capital intensity ratio for the company is: nts Capital intensity ratio = Fixed assets/Fullcapacity sales = $1,800I$1,111 = 1.62 garten needs $1.62 in xed assets for every dollar in sales when it reaches full capacity. At the projected sales level of $1,250, it needs $1,250 I 1.62 = $2.025 in xed assets, which is $225 lower than our projection of $2.250 in fixed assets. 80, EFN is $565 225 = $340. Blue Sky Mfg, lnc., is currently operating at 90 percent of fixed asset capacity. Current sales are $805,500. How much can sales increase before any new xed assets are needed? (Do not round intermediate calculations and round your answer to the nearest dollar amount, e.g., 32.} I 0 Answer is complete but not entirely correct. ; MI mum cellos ' ' I mam?!\" 0]