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How large of increase in fixed assets will company need

Edney Manufacturing Company has $2 billion in sales and $0.6 billion in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity.

a. What level of sales could Edney have obtained if it had been operating at full capacity?

b. What is Edney's Target fixed assets/Sales ratio?

c. If Edney's sales increase 30%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: How large of increase in fixed assets will company need

Reference No:- TGS0558324

Have a Question? (oR Write a Review)

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Solution Preview :

Prepared by a verified Expert

Finance Basics: How large of increase in fixed assets will company need

Reference No:- TGS0558324

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