What is the projected addition to fixed assets

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Reference no: EM131975959

Major Manuscripts, Inc. 2012 Income Statement
Net sales	$	7,800
Cost of goods sold		6,850
Depreciation		230
Earnings before interest and taxes	$	720
Interest paid		65
Taxable Income	$	655
Taxes		240
Net income	$	415
Dividends	$	198

Major Manuscripts, Inc. 2012 Balance Sheet
	2012			2012
Cash	$	2,340	Accounts payable	$	1,840
Accounts rec.		880	Long-term debt		370
Inventory		2,400	Common stock	$	2,500
Total	$	5,620	Retained earnings		4,130
Net fixed assets		3,220
Total assets	$	8,840	Total liabilities & equity	$	8,840

Assume that Major Manuscripts, Inc., is currently operating at 80 percent of capacity and that sales are projected to increase to $10,200. What is the projected addition to fixed assets?

$599

$149

$259

$408

$450

Reference no: EM131975959

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