In: Finance
Williamson Industries has $4 billion in sales and $1 billion in fixed assets. Currently, the company's fixed assets are operating at 95% of capacity.
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a.Level of sales at full capacity= $4 billion/ 0.95
= $4,210,526,316.
b.Target fixed assets to sales ratio= 4 billion/ $1 billion
= 1.00
c.To meet the target asset to sales ratio, sales are increased as a fraction of sales.
= $1 billion*8%
= $80,000,000
In case of any query, kindly comment on the solution.
In case of any query, kindly comment on the solution.