Respuesta :
Answer:
correct option is C. 95.36 percent
Explanation:
given data
capital intensity ratio = 0.87
total assets = $48,900
current sales = $53,600
solution
first we get here Sales at full capacity by Capital Intensity Ratio that is
Capital Intensity Ratio = Total Assets ÷ Sales ..................1
put here value and we get
Sales = [tex]\frac{48900}{0.87}[/tex]
Sales = $56,206.90
and
now we get Level of capacity is the firm currently operating that is express as
Level of capacity = Current sales ÷ Sales at full capacity .................2
put here value and we get
Level of capacity = [tex]\frac{53600}{56206.90}[/tex]
Level of capacity = 95.36%
so correct option is C. 95.36 percent
Level of capacity firm currently operating is 95.36%
Level of capacity:
Given:
Capital intensity ratio = 0.87
Total assets = $48,900
Current sales = $53,600
Find:
Level of capacity
Computation:
Capital Intensity Ratio = [tex]\frac{Total \ assets}{sales}[/tex]
0.87 = 48900 ÷ Total sales
Total sales = $56,206.90
Level of capacity = Current sales / Sales
Level of capacity = 53600 / 56206.9
Level of capacity = 95.36%
Option "C'' is the correct answer to the following question.
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