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Assume a firm is currently operating at 98 percent of capacity with sales of $28,400. Next year, sales are projected to increase to $35,000. What is the projected addition to fixed assets if the firm currently has fixed assets of $16,900 and total assets of $24,600?

Respuesta :

Answer:

$3,511

Explanation:

The given data:

Current year: operating at 98 percent with sales $28,400

Forecast of next year: sales = $35,000

the firm currently has fixed assets of $16,900 and total assets of $24,600

Current maximum capacity = $28,400 / .98 = $28,979.59

Required addition to fixed assets = [($16,900 / $28,979.59) × $35,000] – $16,900 = $3,511

 

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