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How large of an increase in fixed assets will company need

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Reference no: EM133055208

Question - Excess capacity - Edney Manufacturing Company has $2 billion in sales and $0.4 billion in fixed assets. Currently, the company's fixed assets are operating at 85% of capacity.

What level of sales could Edney have obtained if it had been operating at full capacity? Enter your answer in millions. For example, an answer of $5 billion should be entered as 5,000. Round your answer to two decimal places.

What is Edney's Target fixed assets/Sales ratio? Round your answer to two decimal places.

If Edney's sales increase 40%, 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, 13 million should be entered as 13,000,000. Round your answer to the nearest cent.

Reference no: EM133055208

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