Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets
Question # 00353974
Posted By:
Updated on: 08/05/2016 04:29 AM Due on: 08/05/2016
Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets. Currently, the company’s fixed assets are operating at 90% of capacity.
a. What level of sales could Williamson Industries have obtained if it had been operating at full capacity?
b. What is Williamson’s target fixed assets/sales ratio?
c.If Williamson’s sales increase 15%, how large of an increase in fixed assets will the
company need to meet its target fixed assets/sales ratio?
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Rating:
/5
Solution: Williamson Industries has $7 billion in sales and $1.944 billion in fixed assets