(Answered) Required level of fixed assets target fixed assetssales

Finance

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.

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