Question

A firm had sales of $15 million last year while running its manufacturing facilities at 90%...

A firm had sales of $15 million last year while running its manufacturing facilities at 90% capacity. $80M PPE

a. What is the maximum capacity sales that could be forecast without requiring additional investment in PPE?

b. If sales are forecast to increase by 10%, what is the necessary investment in PPE?

c. If instead sales were forecast to increase by 25%, what would be the necessary investment in PPE?

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