Question: 1.Mud Bay Services Inc. is currently operating at only 92% of fixed asset capacity. Current sales are $640,000. How fast can sales grow before any

1.Mud Bay Services Inc. is currently operating at only 92% of fixed asset capacity. Current sales are $640,000. How fast can sales grow before any new fixed assets are needed?

2. For the company in the previous problem, suppose fixed assets are $490,000 and sales are projected to grow to $730,000. How much in new fixed assets are required to support this growth in sales?

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