James Mfg Is Currently Operating at Only 86 Percent of Fixed

question 1

Multiple Choice

James Mfg. is currently operating at only 86 percent of fixed asset capacity. Fixed assets are $387,000. Current sales are $510,000 and are projected to grow to $664,000. What amount must be spent on new fixed assets to support this growth in sales?

• A) $0
• B) $22,654
• C) $46,319
• D) $79,408
• E) $93,608

---

Definitions:

Monthly Deposits

Regular amounts of money deposited into an account or investment at monthly intervals.

Monthly Deposits

Regular payments or investments made into a particular account or scheme every month.

Investment

The action or process of investing money for profit or material result.

Compounded Semi-Annually

An interest calculation method where interest is added to the principal balance twice a year, leading to more interest accrued over time than if compounded once a year.