The Besnier Company had $250 million of sales last year, and it had $75 million of fixed assets that were being operated at 80% of capacity.In millions, how large could sales have been if the company had operated at full capacity?

Question

Quizplus · Accepted Answer

Since the company was operating at 80% capacity to achieve $250 million in sales, operating at 100% capacity would increase sales by 25% (since 100/80 = 1.25). Therefore, $250 million * 1.25 = $312.5 million.

The Besnier Company Had $250 Million of Sales Last Year