A company's sales last year were $500 million and its manufacturing plant operated at 85% of capacity. The actual amount of fixed assets was $200 million. What total amount of fixed assets does the company need if it wants to increase sales by 20%? 1) $204 2) $272 3) $181 4) $160 5) $241

A company's sales last year were $500 million and its manufacturing plant operated at 85% of capacity. The actual amount of fixed assets was $200 million. What total amount of fixed assets does the company need if it wants to increase sales by 20%? 1) $204 2) $272 3) $181 4) $160 5) $241

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

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Question

Accounting. A companys last year were $500

A company's sales last year were $500 million
and its manufacturing plant operated at 85% of
capacity. The actual amount of fixed assets was
$200 million. What total amount of fixed assets
does the company need if it wants to increase
sales by 20%?
1) $204
2) $272
3) $181
4) $160
5) $241

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