Little Toys Has $50 Million Invested in Fixed Assets and Generates

question 77

Essay

Little Toys has $50 million invested in fixed assets and generates sales of $60 million. Currently, the company is working at only 80% of capacity. How much can sales expand without any further investment in fixed assets? How much investment in fixed assets would be required to support a 30% expansion in sales?

---

Definitions:

Positive Energy Balance

A condition where energy intake exceeds energy expenditure, possibly leading to weight gain.

Calories

Units of energy provided by food or drink, which the body uses to sustain its functions and activities.

Binge-Eating Disorder

A psychological disorder characterized by recurrent episodes of consuming large amounts of food while feeling a loss of control.

Bulimia Nervosa

An eating disorder characterized by binge eating followed by purging to prevent weight gain.