Blue Sky Mfg., Inc., is currently operating at 90 percent of fixed asset capacity. Current sales are
Question:
Blue Sky Mfg., Inc., is currently operating at 90 percent of fixed asset capacity. Current sales are $530,000. How much can sales increase before any new fixed assets are needed?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (7 reviews)
To determine full capacity sales we divide the curr...View the full answer
Answered By
Ajay Negi
Hi, I've completed my degree in engineering (Information Technology) from an NIT. Currently working as a software engineer. Wish to impart quality education to the future generation.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 978-1259918940
12th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Question Posted:
Students also viewed these Business questions
-
Alter Bridge Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales are $640,000. How fast can sales grow before any new fixed assets are needed?
-
Pumpkin Mfg., Inc., is currently operating at only 92 percent of fixed asset capacity. Current sales are $725,000. How fast can sales grow before any new fixed assets are needed?
-
Thorpe Mfg., Inc., is currently operating at only 75 percent of fixed asset capacity. Current sales are $480,000. How fast can sales grow before any new fixed assets are needed?
-
There are several methods for this type of analysis. Vertical, horizontal,liquidity, profitability (which includes ratios), scenario and sensitivity, variance and valuation. As we review, do you feel...
-
The vapor pressure of ethanol (C2H5OH) at 20C is 44 mmHg, and the vapor pressure of methanol (CH3OH) at the same temperature is 94 mmHg. A mixture of 30.0 g of methanol and 45.0 g of ethanol is...
-
Write a program that prompts the user for two integers. Pass them to a recursive method that returns the product of the two integers without using multiplication. In other words, instead of using the...
-
What is the purpose of the owners' equity statement?
-
Why do investors typically accept a lower risk-adjusted rate of return on debt capital than equity capital? Suppose a stable, financially healthy, profitable, tax-paying firm that has been financed...
-
explain i) which Bloomberg Terminal functions you can use to find the P/E ratio of McDonald and the P/E ratio of the S&P 500 index, ii) what may be a problem of comparing the P/E ratio of a stock to...
-
Show that X62 can be computed with only eight multiplications.
-
In addition to common?size financial statements, common?base year financial statements are often used. Common?base year financial statements are constructed by dividing the current year account value...
-
For the company in the previous problem, suppose fixed assets are $620,000 and sales are projected to grow to $605,000. How much in new fixed assets are required to support this growth in sales?
-
For the following diagram, compute the rate of return. A=1000 412 5000
-
You are asked by ministers in government to use your knowledge of economics to make recommendations on ways in which the value of non-paid work in the home by (mainly) women can be calculated so that...
-
Define the following characteristics of business cycles: recurrence and persistence.
-
a. Define the term mainstream in relation to the discipline of economics. b. Why do you think that the neo-classical approach came to be the mainstream in economics? c. Look at the curriculum you are...
-
Desired consumption is \(C^{d}=2000+0.9 Y-\) \(100,000 r-G\), and desired investment is \(I^{d}=1000\) \(-45,000 r\). Real money demand is \(M^{d} / P=Y-6000 i\). Other variables are \(\pi^{e}=0.03,...
-
Define real shock and nominal shock. Give an example of each. What type of real shock do real business cycle economists consider the most important source of cyclical fluctuations?
-
If an attorney wishes to combine the small claims of many people into one lawsuit against a defendant, he or she is engaging in a a. Summary judgment. b. Frivolous tort. c. Pointed claim. d. Class...
-
-x/2 x/4 If A = -x/2 and A-1 =6 then x equals
-
Diversification True or false: The most important characteristic in determining the expected return of a well-diversified portfolio is the variance of the individual assets in the portfolio. Explain.
-
Diversification True or false: The most important characteristic in determining the expected return of a well-diversified portfolio is the variance of the individual assets in the portfolio. Explain.
-
Portfolio Risk if a portfolio has a positive investment in every asset, can the standard deviation on the portfolio be less than that on every asset in the portfolio? What about the portfolio beta?
-
show steps to calculation to put in excel!!! As a borrower, you have the option to choose between two 3 0 - year, monthly - payment loans: 7 % interest rate with 3 points, versus 7 . 5 % interest...
-
Of two corporations organized at approximately the same time and engaged in competing businesses, one issued $80 par common stock and the other issued $1 par common stock. Do the par designations...
-
A project has earnings before interest and taxes of $6,500, fixed costs of $40,000, a selling price of $12 a unit, and a sales quantity of 10,000 units. Depreciation is $8,500. What is the variable...
Study smarter with the SolutionInn App