1. Last year LaCroix Optical had $145 million of sales, and it had $40 million of fixed assets that were used at 75% of capacity. Use this information to solve the next two problems.

1. (10 points) In millions, by how much could LaCroix Optical sales increase before it is required to increase its fixed assets?
2. (10 points) LaCroix Optical was approached by the Department of Defense (DoD)because of their ability to manufacture the lens required for night vision goggles. LaCroix Optical is the last remaining firm domiciled in the United States that can manufacture the night vision lens, and subsequently the DoD designated the company as essential critical infrastructure. The companys sales are expected to approximately double after signing a DoD contract. How much additional financing will LaCroix Optical need?