Last Year Wei Guan Inc

question 17

Multiple Choice

Last year Wei Guan Inc.had $350 million of sales,and it had $270 million of fixed assets that were used at 65% of capacity.In millions,by how much could Wei Guan's sales increase before it is required to increase its fixed assets?

• A)$170.09
• B)$179.04
• C)$188.46
• D)$197.88
• E)$207.78

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Impairments

Reductions in the recoverable value of fixed assets or goodwill on a company’s balance sheet, indicating that the asset is not worth its currently stated value.

Property, Plant, Equipment

Tangible assets that are used in the operations of a business, have a longer life, and are not intended for sale, including buildings, machinery, and vehicles.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its principal (face value), reflecting superior credit quality or lower market interest rates.