What level of sales could mitchell have obtained

Assignment Help Finance Basics
Reference no: EM132001610

Question: Mitchell Manufacturing Company has $1,500,000,000 in sales and $340,000,000 in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity.

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.

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

If Mitchell's sales increase by 60%, 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: EM132001610

Questions Cloud

Firm believer in pure expectation yield curve theory : The 3M spot rate is 6% and the 6M spot rate is 5%. As a firm believer in pure expectation yield curve theory,
What proportion of robins have wingspans longer : What proportion of robins have wingspans longer 15.5 inches?
Estimate the before-tax and after-tax component cost : Estimate the before-tax and after-tax component cost of debt for the firm. Estimate the component cost of preferred stock (if applicable) for the firm.
What is the expected return of stock after transaction : What is the expected return of the stock after this? transaction, round to two decimal places?
What level of sales could mitchell have obtained : What level of sales could Mitchell have obtained if it had been operating at full capacity? Round your answer to the nearest dollar.
Wacc increase and irr decrease as capital budget increases : Why does WACC increase and IRR decrease as the capital budget increases? Are there any steps management can take to reverse these trends?
What is the average balance sheet amount : If the company sells 1,370 forecasts every month at a price of $2,470 each, what is its average balance sheet amount in accounts receivable?
Discuss about the goal of purchasing a small sailboat : Misty needs to have $12,000 at the end of 4 years to fulfill her goal of purchasing a small sailboat. She is willing to invest a lump sum today and leave.
What is the change in the expected return on the portfolio : What is the tradeoff between investing in ABC and DEF (i.e., if we increase the weight in DEF by 1%, what is the change in the expected return on the portfolio)

Reviews

Write a Review

Finance Basics Questions & Answers

  A company is trying to decide whether to revise its target

a company is trying to decide whether to revise its target capital structure. currently it targets 50 debt and 50

  Find out npv and tvm of doherty industries

Doherty Industries wants to invest in a new computer system. The company only wants to invest in one system, and has narrowed the choice down to System A and System B.

  Explain main reasons why corporations repurchase own stock

Explain the main reasons why corporations repurchase their own stock, and analyze the two (2) methods geared towards accounting for the repurchase of stock.

  Generally accepted accounting principles

An explanation on  the purpose of the "Generally Accepted Accounting Principles" and the "Sarbanes-Oxley Act" and the role that both of these play within the arena of financial markets or marketplaces

  Demonstrates the task or the skill to the trainee

A Step by step (structured) on the job training method in which a trainer demonstrates the task or the skill to the trainee is called:

  Various types of information systems

Conduct research online regarding the various types of information systems that are used to support e-business and e-commerce. Discuss the differences between customer relationship management, supply chain management, and electronic data interchan..

  Asymmetric information problems

The pecking order states how financing should be increased. In order to avoid asymmetric information problems and misinterpretation of whether management is sending a signal on security overvaluation the company's first rule is to:

  Calculate the realized rate of return earned on this bond

You bought a bond five years ago for $935 per bond. The bond is now selling for $980. It also paid $75 in interest per year, which you reinvested in the bond. Calculate the realized rate of return earned on this bond.

  What is the last date that he could purchase stock

Jim Johansen noticed that a corporation he is considering investing in is about to pay a quarterly dividend. The record date is Thursday, March 15.

  What is the unit contribution margin

A restaurant has an average check of $12.75, with an average variable cost of $4.85. Fixed costs are $142,200.

  What price will the non-competitive bidders pay

During a Treasury Bill auction, the Treasury Department needs to sell $900 Million in new T-Bills with a maturity of 90 days.

  What is the corresponding reserve maintenance period

If the reserve computation period extends from May 18 through May 31, what is the corresponding reserve maintenance period? What accounts for the difference?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd