Answer:
= $9,167
Explanation:
What information do we have relevant to our question
The Current Operating Capacity = 94%
The Current Sales = $840,000
The Current fixed Asset = $500,000
The Projected Sales = $910,000
Step 1: we determine the Sales at full capacity
= Current Sales/ The Capacity of the Fixed Asset
= $840,000 / 0.94 = 893,617.021276
Step 2: We determine the Percentage of Fixed Assets
= Current Fixed Asst / The Sales at full capacity
= $500,000/ 893,617.021276
= 0.5595238095
Step 3: We determine the Required Total fixed Assets
=Percentage of fixed assets x Projected sales.
= 0.5595238095 x $910,000
= 509,166.666645
Step 4:: We calculate the New Fixed Asset needed to support sales growth
= Total Fixed Assets calculated in step 3 - The Current Fixed Assets
= 509,166.666645 - $500,000
= $9,167
