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...
-
Lactic acid (CH 3 CHOHCO 2 H) is found in sour milk, in sauerkraut, and in muscles after activity. (K a for lactic acid = 1.4 10 4 .) (a) If 2.75 g of NaCH 3 CHOHCO 2 , sodium lactate, is added to...
-
True or False: Multiple roots can exist when using IRR and MIRR methods.
-
Leaky Pipe, a local retailer of plumbing supplies, faces demand for one of Its SKUs at a constant rate of 30,000 Units per year. It costs Leaky Pipe $10 to process an order to replenish stock and $1...
-
Question 2 Consider a monopsonist with the following relationship between wage and labor: and the following production function w= a+bL f(K, L) = ln(L) + In(K) (3) (4) 1. Write the short run profit...
-
Which life cycle model would you follow for developing software for each of the following applications? Mention the reasons behind your choice of a particular life cycle model. Clearly Justify your...
-
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?
-
What would have a larger effect on aggregate supply and potential GDP: corporate tax cuts or an equivalent scale increase in government spending on infrastructure and green energy projects?
-
(i) Show that the logarithmic utility function \(u(x)=\log (a+x)\) is the limiting case of a power utility function \(u(x)=\frac{1}{b-1}\left((a+b x)^{(b-1) / b}-1 ight)\) for \(b ightarrow 1\). (ii)...
-
The following regression line predicts the final exam grades based on interim examination grades: a. Explain, in words, the dependent and independent variable. b. Explain what the value of 0.51...
-
Given a power utility function \(u(x)=\frac{x^{1-a}}{1-a}\), for \(a>0\), and a random variable \(\tilde{x}\) such that \(\log \tilde{x}\) is distributed as a Normal \(\mathscr{N}\left(\mu,...
-
The FIFA World Cup was one of the biggest sporting events of 2018. The file WC2018Players contains data of the players of the 32 teams that qualified for the event. A dummy variable is included to...
-
The data shown in the following table and stored in Solar Power represent the yearly a mount of solar power generated by utilities (in millions of kWh) in the United States from 2002 through 2018: a....
-
Complete the crossword puzzle. Across: 2. Electronic linkage that allows different computers to share the same information 3. Main computer in a networked system 7. Cost-______ relationship must be...
-
-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?
-
Develop a multi-threaded program to calculate the value of using the Monte Carlo method.
-
During a long jump Olympic champion Carl Lewis's center of mass rose 1.2 m from the launch point to the top of the arc. What minimum speed u; did he need at launch if he was traveling at 6.4 m/s at...
-
The electric field at the point = 4.87 cm and y = 0 points in the positive points in the positive 21.6cm direction with a magnitude of 11.2 N/C. At the point = 11.8 cm and y direction with a...
Study smarter with the SolutionInn App