What is the formula for calculating the full-capacity sales of a firm?
A) Full-capacity sales = Existing sales level ÷ Percent of capacity used to generate existing sales level
B) Full-capacity sales = Future sales level ÷ (1 - Percent of capacity used to generate future sales level)
C) Full-capacity sales = Existing sales level ÷ Percent of capacity used to generate future sales level
D) Full-capacity sales = Future sales level ÷ (1 + Percent of capacity used to generate existing level of assets)
E) Full-capacity sales = Existing sales level ÷ (1 - Percent of capacity used to generate future level of assets)

Question

Quizplus · Accepted Answer

The formula for calculating the full-capacity sales of a firm is Full-capacity sales = Existing sales level ÷ Percent of capacity used to generate existing sales level. This formula takes into account the existing sales level and the percentage of capacity used to generate those sales to determine the full-capacity sales level of the firm.

What Is the Formula for Calculating the Full-Capacity Sales of a Firm