level of fixed assets as follows:

target fixed assets ratio with the projected sales to calculate the firm's required

Required level of fixed assets $=($Target fixed assets$/$Sales$)($Projected sales$)$

Quantitative Problem $2$: Mitchell Manufacturing Company has $$1,800,000,000$ in sales and $$280,000,000$ in fixed assets. Currently, the company's fixed assets are operating at $75\%$ of capacity.

a$.$ What level of sales could Mitchell have obtained if it had been operating at full capacity? Round your answer to the nearest dollar. Do not round intermediate calculations.

$

b$.$ What is Mitchell's Target fixed assets$/$Sales ratio? Round your answer to two decimal places. Do not round intermediate calculations.

$\%$

c$.$ If Mitchell's sales increase by $55\%,$ how large of an increase in fixed assets will the company need to meet its Target fixed assets$/$Sales ratio? Round your answer to the nearest dollar. Do not round intermediate calculations. $ $$

Check My Work $(2$ remaining$)$

Icon Key