the nearest dollar.

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First, the firm's management must find out the firm's full capacity sales as follows:

Full capacity sales $=\frac{\text{A}\text{c}\text{t}\text{u}\text{a}\text{l}\text{s}\text{a}\text{l}\text{e}\text{s}}{\{\begin{array}{ccc}\text{:}[& \text{P}\text{e}\text{r}\text{c}\text{e}\text{n}\text{t}\text{a}\text{g}\text{e}of\text{c}\text{a}\text{p}\text{a}\text{c}\text{i}\text{t}\text{y}& ]\\ & at\text{w}\text{h}\text{i}\text{c}\text{h}\text{f}\text{i}\text{x}\text{e}\text{d}\text{a}\text{s}\text{e}\text{e}\text{t}\text{s}& \\ & \text{w}\text{e}\text{r}\text{e}\text{o}\text{p}\text{e}\text{r}\text{a}\text{t}\text{e}\text{d}& \end{array}}$

Next, management would calculate the firm's target fixed assets ratio as follows:

$\frac{\text{T}\text{a}\text{r}\text{g}\text{e}\text{t}\text{f}\text{i}\text{x}\text{e}\text{d}\text{a}\text{s}\text{s}\text{e}\text{t}\text{s}}{\text{S}\text{a}\text{l}\text{e}\text{s}}=\frac{\text{A}\text{c}\text{t}\text{u}\text{a}\text{l}\text{f}\text{i}\text{x}\text{e}\text{d}\text{a}\text{s}\text{s}\text{e}\text{t}\text{s}}{\text{F}\text{u}\text{l}\text{l}\text{c}\text{a}\text{p}\text{a}\text{c}\text{i}\text{t}\text{y}\text{s}\text{a}\text{l}\text{e}\text{s}}$

Finally, management would use the target fixed assets ratio with the projected sales to calculate the firm's required level of fixed assets as follows:

Required level of fixed assets $=($Target fixed assets$/$Sales$)($Projected sales$)$ capacity.

a$.$ What level of sales could Mitchell have obtained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollar.

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b$.$ What is Mitchell's Target fixed assets$/$Sales ratio? Do not round intermediate calculations, Round your answer to two decimal places.

$\%$ your answer to the nearest dollar.

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