Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Williamson Industries has $7 billion in sales and $1.790 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. What

Williamson Industries has $7 billion in sales and $1.790 billion 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? Enter your answer in billions of dollars. Round your answer to five decimal places. $ billion
  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? Enter your answer in billions of dollars. Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to five decimal places. $ billion

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions

Question

What is the cerebrum?

Answered: 1 week ago