1. A residential site is purchased for $200650. Two flats are constructed on the site for a cost of $294102. The developed site is then sold one year later for $990297. What is the profit margin? (Please round your answer to the nearest dollar but exclude the $ sign when typing your answer.)
2. Southern Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales are $820,000. Fixed assets are $490,000 and sales are projected to grow to $900,000. How much in new fixed assets are required to support this growth in sales? Assume the company wants to operate at full capacity.