Calculate the projected ﬁxed assets needed given the following information: current sales = $275,000; current sales capacity = 75%; current ﬁxed assets = $40,000; projected future sales =
$475,000.
A) $11,818
B) $51,818
C) $12,818
D) $52,818
E) $60,818

Question

Quizplus · Accepted Answer

The projected fixed assets needed can be calculated using the following formula:Projected fixed assets = (Projected sales / Current sales capacity) * Current fixed assetsProjected fixed assets = ($475,000 / 0.75) * $40,000Projected fixed assets = $63,333.33Therefore, the projected fixed assets needed is $63,333.33.

Calculate the Projected ﬁXed Assets Needed Given the Following Information