Question-maximum sales growth rate


Last year Handorf-Zhu Inc. had $850 million of sales, and it had $425 million of fixed assets that were used at only 60% of capacity. What is the maximum sales growth rate the company could achieve before it had to increase its fixed assets?

a. 54.30%

b. 57.16%

c. 60.17%

d. 63.33%

e. 66.67%

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