Last year baron enterprises had $800 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 sales increase before it is required to increase its fixed assets?
select the correct answer.
a. $416.80 b. $430.80 c. $444.80 d. 423.80 e. 437.80

B. $430.80

Step-by-step explanation:

Given : Last year Baron Enterprises had $800 million of sales.

It had $270 million of fixed assets that were used at 65% (=0.65) of capacity last year.

Now, the used asset = million

Now, Baron Enterprises had $800 million of sales in $175.5 million of assets , if we use all of $270 million of fixed assets , then the sales will be :-

Now, the increase in Baron's sales before it is required to increase its fixed assets =

Hence, the increase in Baron's ( in million ) sales before it is required to increase its fixed assets = $430.80