Based on Its Existing Sales, What Is the Formula for Calculating

question 19

Multiple Choice

Based on its existing sales, 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 existing sales level)
• C)Full-capacity sales = Future sales level ÷ Percent of capacity used to generate existing 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 existing level of assets)

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Definitions:

American Producers

Businesses or individuals in the United States that create or provide goods and services.

Oil Imports

The purchase of petroleum from foreign countries, essential for economies that consume more oil than they produce domestically.

Comparative Advantage

is the economic theory that a country should specialize in producing and exporting goods and services for which it has the lowest opportunity cost.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.