Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Williamson Industries has $5 million in sales and $2.061 million in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. What

Williamson Industries has $5 million in sales and $2.061 million in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity.

  1. 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 million should be entered as 25,000,000. Round your answer to the nearest cent. $
  2. What is Williamson's target fixed assets/sales ratio? Do not round intermediate calculations. Round your answer to two decimal places. %
  3. If Williamson's sales increase 14%, 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 million should be entered as 25,000,000. Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest cent. $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Valuation And Federal Taxes Procedure Law And Perspective

Authors: David Laro, Shannon P. Pratt

2nd Edition

0470601620, 978-0470601624

More Books

Students also viewed these Finance questions

Question

3. List some financial (tangible) metrics of knowledge management.

Answered: 1 week ago