Question
Mitchell Manufacturing Company has $1,500,000,000 in sales and $300,000,000 in fixed assets. Currently, the company's fixed assets are operating at 70% of capacity. What level
Mitchell Manufacturing Company has $1,500,000,000 in sales and $300,000,000 in fixed assets. Currently, the company's fixed assets are operating at 70% of capacity.
-
What level of sales could Mitchell have obtained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
-
What is Mitchell's Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to two decimal places.
%
-
If Mitchell's sales increase 45%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to the nearest dollar.
$
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started