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Nihal Manufacturing Company has $ 3 billion in sales and $ 7 8 7 , 5 0 0 , 0 0 0 in fixed assets.
Nihal Manufacturing Company has $ billion in sales and $ in fixed assets. Currently, the company's fixed assets are operating at of capacity.
a What level of sales could Nihal have obtained if it had been operating at full capacity?
b What is Nihal's target fixed assetssales ratio?
c If Nihal's sales increase how large of an increase in fixed assets will the company need to meet its target fixed assetssales ratio?
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