Calculate the Projected Fixed Assets Needed Given the Following Information

question 300

Multiple Choice

Calculate the projected fixed assets needed given the following information: current sales = $25,000; current sales capacity = 80%; current fixed assets = $15,000; projected future sales = $40,000.

• A) $5,000
• B) $20,200
• C) $4,200
• D) $19,200
• E) $5,200

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Definitions:

Carrying Amount

The carrying amount is the value of an asset as represented in the accounting records, factoring in depreciation, amortization, and impairment costs.