Required level of fixed assets = (Target fixed assets/Sales) × Projected sales
Quantitative Problem: Mitchell Manufacturing Company has $1,500,000,000 in sales and $380,000,000 in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity.
- 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.