Thorpe Mfg., Inc., is currently operating at only 90 percent of fixed asset capacity. Current sales are $792,000. How much can sales increase before any new fixed assets are needed?

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 16P: The Thompson Corporation projects an increase in sales from 1.5 million to 2 million, but it needs...
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How much can sales increase before any new fixed assets are needed on these general accounting question?

Thorpe Mfg., Inc., is currently operating at only
90 percent of fixed asset capacity. Current sales
are $792,000. How much can sales increase
before any new fixed assets are needed?
Transcribed Image Text:Thorpe Mfg., Inc., is currently operating at only 90 percent of fixed asset capacity. Current sales are $792,000. How much can sales increase before any new fixed assets are needed?
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