What is Williamson target fixed assets-sales ratio

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Reference no: EM132806212

Problem - EXCESS CAPACITY - Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity.

Required -

a. What level of sales could Williamson Industries have obtained if it had been operating at full capacity?

b. What is Williamson's target fixed assets/sales ratio?

c. If Williamson's sales increase 15%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio?

Reference no: EM132806212

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