Question: Company x 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 the company have obtained if it had been operating at full capacity?
b. What is the company's fixed assets/sales ratio?
c. If the company's sales increase 12%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio?