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

---

Definitions:

Trabeculae

The network of irregularly shaped bony plates or struts within spongy bone, helping to distribute stress and support weight.

Spongy Bone

A type of bone tissue with a porous structure found at the ends of long bones, within the spinal vertebrae, and in the pelvic bones, which helps reduce the weight of the bones and contains bone marrow.

Compact Bone

The dense, hard outer layer of bone that provides strength and protection to the skeletal structure.

Concentric Lamellae

Circular plates of mineralized bone matrix that are found around a central canal in compact bone, forming the basic structural unit known as the osteon.