Please show as much work as possible! 1) Madrigal Electromotive GmbH is currentl

Question

Please show as much work as possible!

1) Madrigal Electromotive GmbH is currently operating at only 95 percent of fixed asset capacity. Current sales are $800,000. Fixed assets are $480,000 and sales are projected to grow to $890,000. 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))

2)Valyrian Steel Products wishes to maintain a growth rate of 10.4 percent a year, a debt

1) Madrigal Electromotive GmbH is currently operating at only 95 percent of fixed asset capacity. Current sales are $800,000. Fixed assets are $480,000 and sales are projected to grow to $890,000. 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))

Explanation / Answer

3) Madrigal Electromotive GmbH is currently operating at only 87 percent of fixed asset capacity. Current sales are $860,000. How fast can sales grow before any new fixed assets are needed? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Full capacity sales=$860,000/0.87=988505.74

Maximum sale growth

=(988505.74 /860,000)- 1=0.1494=14.94%

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