Order the answer to: In the previous problem, suppose the firm was operating at

Academic Writing business-corporate-finance Order the answer to: In the previous problem, suppose the firm was operating at

business-corporate-finance

Order the answer to: In the previous problem, suppose the firm was operating at

Question In the previous problem, suppose the firm was operating at only 80 percent capacity in 2015. What is EFN now? Capital intensity ratio = Fixed assets/Full-capacity sales = $1,800/$1,111 = 1.62 This means that Rosengarten needs $1.62 in fixed assets for every dollar in sales when it reaches full capacity. At the projected sales level of $1,250, it needs $1,250 × 1.62 5 $2,025 in fixed assets, which is $225 lower than our projection of $2,250 in fixed assets. So, EFN is only $565 – 225 = $340.
Subject business-corporate-finance
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