A Firm Has Current Sales of $2

question 13

Multiple Choice

A firm has current sales of $2.4 million and fixed assets of $1.65 million.The firm is currently operating at 88% of capacity.How high can the firm's sales go without requiring any additional fixed assets?

• A) $2.423 million
• B) $2.509 million
• C) $2.727 million
• D) $2.836 million

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Definitions:

Short-Term Contracts

Agreements that have a limited duration, typically lasting for a few days, weeks, or months.

Warehousing

The process of storing goods in a dedicated facility to ensure their availability for future distribution or sale.

Transportation Requirements

Specifications or conditions that need to be met for the movement of goods or people, including mode of transport, capacity, timing, and infrastructure needs.

Graphic Device

Hardware used to create, display, or manage visual content, such as a graphics card in a computer.