A Victoria ﬁrm currently has $1,800 in sales and is operating at 60 percent of the ﬁrm's capacity. What is the full capacity level of sales?
A) $720
B) $1,080
C) $2,880
D) $3,000
E) $4,500

Question

Quizplus · Accepted Answer

To find the full capacity level of sales, we need to divide the current sales by the capacity utilization rate:

Full capacity level of sales = Current sales ÷ Capacity utilization rate
Full capacity level of sales = $1,800 ÷ 0.60
Full capacity level of sales = $3,000

Therefore, the correct answer is D) $3,000.

A Victoria ﬁRm Currently Has $1,800 in Sales and Is