What is the company fixed assets-sales ratio


Question: 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?

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Finance Basics: What is the company fixed assets-sales ratio
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