Question

Williamson Industries has $6 billion in sales and $1.1 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. What level of sales could Williamson Industries have obtained if it had been operating at full capacity

Answer 1

Answer:

$6,666,666.67

Explanation:

The computation of the level of sales operating at full capacity is as follows

= Sales ÷ Operating capacity percentage

where,

Sales is $6,000,000

And, the operating capacity percentage is 90%

Now placing these values to the above formula

So, the level of sales operating at full capacity is

= $6,000,000 ÷ 90%

= $6,666,666.67

Hence, the level of sales is $6,666,666.67