Homework assignment #2 FINANCE 0 Homework assignment #2 Question 4 (of 4) 4. 10.00 points The discussion of EFN in the chapter implicitly assumed that the company was operating at full capacity Often, this is not the case. For example, assume that Rosengarten was operating at 90 percent capacity Full-capacihy sales would be $1,0001 90 -$1,111. The balance shoet shows $1,800 in fxed assets. The capital intensity ratio for the company is Capital intensity ratio Fixed assots/Full-capacity salos $1,800/$1,111-1.62 This moans that Rosengarten needs $1.62 in fxed assets for every dollar in sales when it reaches ful capacity. At the projected sales level of $1,250, it needs $1,250 1.62 $2,025 in fioxed assets, which is $225 lower than our projection of $2.260 in foxed assets. So, EFN is only $565-225- $340 Thorpe Mig. Inc., is currently operating at only 90 percent of fixed asset capacity, Current sales are $700,000. How much can sales increase before any new foxed assets are needed? (Do not round Intermediate calculations and round your final answer to the nearest dollar amount (e 32) Sales growth Worksheet Chetk my.work MacBook Air 4