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Thorpe Mfg., Inc., is currently operating at only 90 percent of fixed asset capacity. Current sales are $680,000. How much can sales increase before any

Thorpe Mfg., Inc., is currently operating at only 90 percent of fixed asset capacity. Current sales are $680,000. How much can sales increase before any new fixed assets are needed?

Suppose fixed assets are $640,000 and sales are projected to grow to $790,000. How much in new fixed assets are required to support this growth in sales.

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