Assume Stansﬁeld Corporation is utilizing its ﬁxed assets at 90% capacity. Assume costs, current liabilities, and current assets vary directly with sales, and that the dividend payout ratio remains
Unchanged. If sales increase by 20%, what will total ﬁxed assets be?
A) $256 million
B) $286 million
C) $313 million
D) $359 million
E) $470 million

Question

Assume Stansﬁeld Corporation is utilizing its ﬁxed assets at 90% capacity. Assume costs, current liabilities, and current assets vary directly with sales, and that the dividend payout ratio remains
Unchanged. If sales increase by 20%, what will total ﬁxed assets be?
A) $256 million 
B) $286 million 
C) $313 million 
D) $359 million 
E) $470 million

Quizplus · Accepted Answer

The Answer of 
 Assume Stansﬁeld Corporation is utilizing its ﬁxed assets at 90% capacity. Assume costs, current liabilities, and current assets vary directly with sales, and that the dividend payout ratio remains
Unchanged. If sales increase by 20%, what will total ﬁxed assets be?
A) $256 million 
B) $286 million 
C) $313 million 
D) $359 million 
E) $470 million

Assume Stansﬁeld Corporation Is Utilizing Its ﬁXed Assets at 90