Hodgkiss mfg., inc., is currently operating at only 92 percent of fixed asset capacity. current sales are $780,000. fixed assets are $470,000 and sales are projected to grow to $880,000. how much in new fixed assets are required to support this growth in sales? assume the company wants to operate at full capacity. (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

$17,835.90

Explanation:

Currently Hodgkiss is operating at 92% of its fixed asset capacity, so they have an spare 8% to grow without adding any more fixed assets: ($780,000 / 92) x 100 = $847,826.09.

So they need to add fix assets in to increase its production by $32,173.91 (= $880,000 - $847,826.09).

Every dollar spent in fixed assets generates at full capacity $1.8039 in production output (= $847,826 / $470,000).

If they want to increase production by $32,174, they will need to spend $17,835.90 in fixed assets.

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability

hi there, i would say your answer is:

b. there is a fixed quantity of resources and technology available.

hope that : )