What Is the Formula for Calculating the Full-Capacity Sales of a Firm

question 32

Multiple Choice

What is the formula for calculating the full-capacity sales of a firm?

• A) Full-capacity sales = Existing sales level ÷ Percent of capacity used to generate existing sales level
• B) Full-capacity sales = Future sales level ÷ (1 - Percent of capacity used to generate future sales level)
• C) Full-capacity sales = Existing sales level ÷ Percent of capacity used to generate future sales level
• D) Full-capacity sales = Future sales level ÷ (1 + Percent of capacity used to generate existing level of assets)
• E) Full-capacity sales = Existing sales level ÷ (1 - Percent of capacity used to generate future level of assets)