Finer Industries has $5 billion in sales and $1.7 billion in fixed assets. Currently, the companys fixed
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Question:
Finer Industries has $5 billion in sales and $1.7 billion in fixed assets.
Currently, the company’s fixed assets are operating at 90% of capacity.
a. What level of sales could Finer Industries have obtained if it had been operating at full capacity?
b. What is Finer’s Target fixed assets/Sales ratio?
c. If Finer’s sales increase 12%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio?
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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