Seattle Coffee has
$4 billion in sales
$1.6 billion in fixed assets
The company's fixed assets are operating at 90% of capacity.
1. What level of sales could Seattle Coffee have obtained if it had been operating at full capacity? Round your answer to the nearest cent.
$___________________
2. What is Seattle Coffee's target fixed assets/Sales ratio? Round your answer to two decimal places.
36% CORRECT
3. If Seattle Coffee's sales increase 12%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? Round your answer to the nearest cent.