Please help! explain and correct the error in this calculation
2 answers:
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Answer: B. $430.80
Step-by-step explanation:
Given : Last year Baron Enterprises had $800 million of sales.
It had $270 million of fixed assets that were used at 65% (=0.65) of capacity last year.
Now, the used asset = million
Now, Baron Enterprises had $800 million of sales in $175.5 million of assets , if we use all of $270 million of fixed assets , then the sales will be :-
Now, the increase in Baron's sales before it is required to increase its fixed assets =
Hence, the increase in Baron's ( in million ) sales before it is required to increase its fixed assets = $430.80