Pacific Manufacturing had $480 million in sales last year, with fixed assets of $350 million that were operating at 70% of capacity. In millions, how much could Pacific's sales increase before requiring additional fixed asset investment?
Pacific Manufacturing had $480 million in sales last year, with fixed assets of $350 million that were operating at 70% of capacity. In millions, how much could Pacific's sales increase before requiring additional fixed asset investment?
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 7P
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Transcribed Image Text:Pacific Manufacturing had $480 million in sales last year,
with fixed assets of $350 million that were operating at 70%
of capacity. In millions, how much could Pacific's sales
increase before requiring additional fixed asset investment?
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