Wood Products is operating at 87 percent capacity and earning a substantial profit. A sales increase is least apt to increase the firm's:

Question

Quizplus · Accepted Answer

Since the company is already operating at 87% capacity, an increase in sales would not necessarily require an increase in fixed assets (such as plant and equipment) to accommodate production. Therefore, fixed assets are least likely to be affected by an increase in sales.

Wood Products Is Operating at 87 Percent Capacity and Earning