Hard question–Two Quiz Questions

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Question 1

The Besnier Company had $250 million of sales last year, an it had $75 million of fixed assets that were being operated at 80% of capacity. In millions, how large could sales have been if the company had operated at full capacity?

a) $312.5

b) $328.1

c) $344.5

d) $361.80

e) $379.80

Question 2

Last year Baron Enterprises had $350 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity last year. In millions, by how much could Baron’s sale increase before it is required to increase its fixed assets?

a) $179.09

b) 179.04

c) $188.46

d) $197.88

e) $207.78