Home / Questions / Alter Bridge Mfg., Inc., is currently operating at only 88 percent of fixed asset capacity
Alter Bridge Mfg., Inc., is currently operating at only 88 percent of fixed asset capacity. Current sales are $680,000. Fixed assets are $420,000 and sales are projected to grow to $830,000. How much in new fixed assets are required to support this growth in sales? Assume the company maintains its current operating capacity. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
I tried solving both of these methods below but they did not work:
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