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Edney Manufacturing Company has $3 billion in sales and $0.7 billion in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity.
What level of sales could Edney have obtained if it had been operating at full capacity?
What is Edney's Target fixed assets/Sales ratio?
If Edney's sales increase 35%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio?
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