Question
Quantitative Problem 2: Mitchell Manufacturing Company has $1,800,000,000 in sales and $230,000,000 in fixed assets. Currently, the company's fixed assets are operating at 70% of
Quantitative Problem 2: Mitchell Manufacturing Company has $1,800,000,000 in sales and $230,000,000 in fixed assets. Currently, the company's fixed assets are operating at 70% of capacity.
A.) What level of sales could Mitchell have obtained if it had been operating at full capacity? Round your answer to the nearest dollar. Do not round intermediate calculations. $
B.) What is Mitchell's Target fixed assets/Sales ratio? Round your answer to two decimal places. Do not round intermediate calculations. %
C.) If Mitchell's sales increase by 50%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Round your answer to the nearest dollar. Do not round intermediate calculations.
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