Question
In 2014, Firm X made $500 in sales with $1,200 in fixed assets. Suppose the firm had been operating at 75% of fixed asset capacity.
In 2014, 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)$150.00
B)$176.471
C)$218.182
D)$360.00
E) No additional fixed assets required
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
