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Edney Manufacturing Company has $2 billion in slaes and $0.6 billion in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity.

a. What level of sales could Edney have obtained if it had been operating on full capacity?

b. What is Edney's Target fixed assets/Sales ratio?

c. If Edney's sales increase 30%, how large of an increase in fixed assets wil the company need to meet its Target fixed assets/Sales ratio?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92059753

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