Weber Interstate Paving Co. had $5,000 of sales and $2,000 of fixed assets last year, so...

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Weber Interstate Paving Co. had $5,000 of sales and $2,000 of fixed assets last year, so its FA/Sales ratio was 40%. However, its fixed assets were used at only 85% of capacity. If the company expects sales will increase to $6.000, how much additional assets are required to support the increase in sales? Weber Interstate Paving Co. had $5,000 of sales and $2,000 of fixed assets last year, so its FA/Sales ratio was 40%. However, its fixed assets were used at only 85% of capacity. If the company expects sales will increase to $6.000, how much additional assets are required to support the increase in sales?

Answer rating: 100% (QA)

40 of fixed assets are required to support increase in sale FAsale ratio is 40 ... View the full answer