Quantitative Problem 2: Mitchell Manufacturing Company has $1,600,000,000 in sales and $290,000,000 in fixed assets. Currently, the company's fixed assets are operating at 75% of capacity. a. What level of sales could Mitchell have obtained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollar. b. What is Mitchell's Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to two decimal places. c. If Mitchell's sales increase by 35%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to the nearest dollar.
Quantitative Problem 2: Mitchell Manufacturing Company has $1,600,000,000 in sales and $290,000,000 in fixed assets. Currently, the company's fixed assets are operating at 75% of capacity. a. What level of sales could Mitchell have obtained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollar. b. What is Mitchell's Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to two decimal places. c. If Mitchell's sales increase by 35%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello Bartleby team,
As requested, I'm resubmitting as a separate question for Quantitative Problem #2. Thank you for any review and insight into the answers for this problem set!
![**Quantitative Problem 2**: Mitchell Manufacturing Company has $1,600,000,000 in sales and $290,000,000 in fixed assets. Currently, the company's fixed assets are operating at 75% of capacity.
a. What level of sales could Mitchell have obtained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollar.
\[ \text{Answer: \$} \]
b. What is Mitchell’s Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to two decimal places.
\[ \text{Answer: } \% \]
c. If Mitchell’s sales increase by 35%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to the nearest dollar.
\[ \text{Answer: \$} \]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa741ef42-b2cf-4789-a32d-fb97aad245f5%2F832b9c16-719d-48b2-a94d-722032d4b8de%2Fxv1q7vt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Quantitative Problem 2**: Mitchell Manufacturing Company has $1,600,000,000 in sales and $290,000,000 in fixed assets. Currently, the company's fixed assets are operating at 75% of capacity.
a. What level of sales could Mitchell have obtained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollar.
\[ \text{Answer: \$} \]
b. What is Mitchell’s Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to two decimal places.
\[ \text{Answer: } \% \]
c. If Mitchell’s sales increase by 35%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to the nearest dollar.
\[ \text{Answer: \$} \]
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