The firm has $900 of sales, with $720 of fixed assets, and is operating at 80% of capacity. How much can sales increase to reach full capacity?

a. $225

b. $720

c. $1,125

d. $1,620

The firm has sales of $500 and is operating at 80% of capacity. If the fixed assets of the firm are $160, what level can sales be before the company will need additional external funds?

a. $600

b. $625

c. $700

d. $825