Required level of fixed assets = (Target fixed assets/Sales) × Projected sales
Quantitative Problem 2: Mitchell Manufacturing Company has $1,500,000,000 in sales and $380,000,000 in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity.
- What level of sales could Mitchell have obtained if it had been operating at full capacity? Round your answer to the nearest dollar. Do not round intermediate calculations.
1,875,000 is the level of sales could... View the full answer