Most assets can be increased as a percentage of sales. For instance, cash can be increased by any amount. However, fixed assets often must be increased in specific amounts because it is impossible, as a practical matter, to buy part of a new plant or machine. In this case, a company has a $$staircase$$ or $$lumpy$$ fixed cost structure. Assume that East Coast Yachts is currently producing at $100$ percent of capacity. As a result, to expand production, the company must set up an entirely new line at $$25$ million. Calculate the new EFN with this assumption. What does this imply about capacity utilization for East Coast Yachts next year?