FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Subject Cost Accounting
Southern Mfg., Inc., is currently operating at only 94
percent of fixed asset capacity. Current sales are
$740,000. Fixed assets are $450,000 and sales are
projected to grow to $860,000. How much in new fixed
assets are required to support this growth in sales?
Assume the company maintains its current operating
capacity.
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Transcribed Image Text:Subject Cost Accounting Southern Mfg., Inc., is currently operating at only 94 percent of fixed asset capacity. Current sales are $740,000. Fixed assets are $450,000 and sales are projected to grow to $860,000. How much in new fixed assets are required to support this growth in sales? Assume the company maintains its current operating capacity.
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