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What level of sales could williamson industries have obtain

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Reference no: EM132879106

Williamson Industries has $6 million in sales and $2.950 million in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity.

Problem a. What level of sales could Williamson Industries have obtained if it had been operating at full capacity? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest cent.

Problem b. What is Williamson's target fixed assets/sales ratio? Do not round intermediate calculations. Round your answer to two decimal places.

Problem c. If Williamson's sales increase 12%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio?

Reference no: EM132879106

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