Dawson Metals Is Currently Operating at 94% of Its Capacity

question 7

Multiple Choice

Dawson Metals is currently operating at 94% of its capacity and has sales of $3.1 million and fixed assets of $2.8 million. How much should the firm budget for fixed asset purchases if sales are projected to increase by 9% next year?

• A) $0
• B) $68,880
• C) $43,616
• D)$98,407

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Definitions:

Normally Distributed

Refers to a data distribution that follows a bell-shaped curve, characterized by data clustering around a mean or central value.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values tend to be close to the mean, while a high standard deviation indicates that the values are spread out over a wider range.

Uniformly Distributed

Describes a distribution in which all outcomes are equally likely, showing no preference for any interval of values within the range of the distribution.

Assembling Product

The process of combining various components or elements to create a finished product.