Question
Williamson Industries has $3 billion in sales and $1.8 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. a.
Williamson Industries has $3 billion in sales and $1.8 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity.
a. What level of sales could Williamson Industries have obtained if it had been operating at full capacity? Write out your answer completely. For example, 25 billion should be entered as 25,000,000,000. Round your answer to the nearest cent. $____
b. What is Williamson's target fixed assets/sales ratio? Round your answer to two decimal places. ___ %
c. If Williamson's sales increase 15%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answer completely. For example, 25 billion should be entered as 25,000,000,000. Round your answer to the nearest cent. Negative amount should be indicated by a minus sign. 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