Quantitative Problem 2: Mitchell Manufacturing Company has $1,800,000,000 in sales and $230,000,000 in fixed assets. Currently, the company's fixed assets are operating at 70% 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.
$
What is Mitchell's Target fixed assets/Sales ratio? Round your answer to two decimal places. Do not round intermediate calculations.
%
If Mitchell's sales increase by 50%, 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.
$
