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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
