Quantitative problem-fixed assets

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Reference no: EM13929789

Quantitative Problem : Mitchell Manufacturing Company has $1,000,000,000 in sales and $260,000,000 in fixed assets. Currently, the company's fixed assets are operating at 75% of capacity.

a) What level of sales could Mitchell have obtained if it had been operating at full capacity? Round your answer to the nearest dollar. Do not round intermediate calculations.

b) What is Mitchell's Target fixed assets/Sales ratio? Round your answer to two decimal places. Do not round intermediate calculations.

c) If Mitchell's sales increase by 55%, 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 dollar. Do not round intermediate calculations.

Reference no: EM13929789

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