Answer:
Level of sales at full capacity = $2,666,666,666.67
Explanation:
75 % of fixed assets = 500,000,000
1% = 500,000,000/75
100% of fixed asset= 500,000,000/75 × 100 = 666,666,666.67
Fixed assets at 100% capacity = 666,666,666.67
If $500,000,000 worth of fixed asset = $ 2,000,000,000 sales
$1 fixed asset = (2,000,000,000 / 500,000,000 ) sales
Then 666,666,666.67 fixed asset would produces
(2,000,000,000/ 500,000,000) × 666,666,666.67= 2,666,666,666.67 sales
Level of sales at full capacity = $2,666,666,666.67
