year Wei Guan Inc.had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity.In millions, by how much could Wei Guan's sales increase before it is required to increase its fixed assets?
A)$170.09
B)$179.04
C)$188.46
D)$197.88
E)$207.78

Question

Quizplus · Accepted Answer

Wei Guan Inc. is currently using 65% of its fixed assets. Therefore, the full capacity sales would be $350 million / 0.65 = $538.46 million. The potential increase in sales before needing more fixed assets is $538.46 million - $350 million = $188.46 million.

Year Wei Guan Inc