Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / A firm has a net income of $8 on sales of $40 with total assets of $90 including fixed assets of $75

A firm has a net income of $8 on sales of $40 with total assets of $90 including fixed assets of $75

Finance

A firm has a net income of $8 on sales of $40 with total assets of $90 including fixed assets of $75. Having a retention ratio of 50 percent, if the firm is now operating at 80 percent capacity, what are the maximum sales at full capacity?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Computation of Maximum Sales at Full Capacity:

Given, 

Sales at 80% Capacity $40

Maximum Sales at Full Capacity = $40/80% = $50 

Related Questions