Calculation of fixed assets or sales ratio

Reference no: EM1354042

Company x has 5 billion in sales and 1.7 billion in fixed assets. currently the company's fixed assets are operating at 90% of capacity.

a. what level of sales could the company have obtained if it had been operating at full capacity?

b. what is the company's fixed assets/sales ratio?

c. if the company'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: EM1354042

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