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Please show all work for c and d. 9 (Percentage of sales-plant and equipment) A company had sales last year of $16,000,000 and forecasts sales
Please show all work for c and d.
9 (Percentage of sales-plant and equipment) A company had sales last year of $16,000,000 and forecasts sales of $20,000,000 in the coming year. It ended the year with $5,000,000 of plant and equipment. Forecast the end -of -coming -year balance for plant and equipment under each of the following alternatives. a. Plant and equipment is now at capacity and will be increased proportionally to sales. b. Plant and equipment is now at capacity. New plant and equipment must be purchased in $750,000 increments. c. Plant and equipment is now being used at 90% of capacity. New plant and equipment will be purchased in the exact amount needed. d. Plant and equipment is now being used at 90% of capacity. New plant and equipment must be purchased in $750,000 incrementsStep by Step Solution
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