A firm that only utilizes 40% of its fixed assets capacity to generate $1,000,000 in sales will be able to increase sales to $4,000,000 before full capacity is reached and plant and equipment would have to be increased.

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The Answer of A firm that only utilizes 40% of its fixed assets capacity to generate $1,000,000 in sales will be able to increase sales to $4,000,000 before full capacity is reached and plant and equipment would have to be increased.

A Firm That Only Utilizes 40% of Its Fixed Assets