Answer to Question #218790 in Economics for trh

Question

last year godinho corp. has $250million of sales and it had $75millionof fixed assets that were being operated at 80% of capacity. in millions, how large could sales have been if the company had operated at full capacity?

Answer 1

If the company had operated at full capacity, then the sales could have been 250/0.8 = $312.5 million.