Assume a firm is currently operating at full capacity. Sales are forecast to increase by 20% next year. Management could do each of the following EXCEPT:
A) Attempt to restrain sales growth so that no new fixed assets are needed.
B) Increase the firm's investment in fixed assets to meet the added demand.
C) Subcontract with other manufacturers to increase production and meet the added demand.
D) Lease additional equipment to meet the added demand.
E) Acquire more current assets in order to meet the added demand.
Correct Answer:
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