How large of an increase in fixed assets will company need

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Reference no: EM13287626

Seattle Coffee has

$4 billion in sales
$1.6 billion in fixed assets
The company's fixed assets are operating at 90% of capacity.

1. What level of sales could Seattle Coffee have obtained if it had been operating at full capacity? Round your answer to the nearest cent.

$___________________

2. What is Seattle Coffee's target fixed assets/Sales ratio? Round your answer to two decimal places.

36% CORRECT

3. If Seattle Coffee's sales increase 12%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Round your answer to the nearest cent.

Reference no: EM13287626

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