Subject:- finance Excel Online Structured Activity: Excess capacityEarleton Manufacturing Company has $2 billion in sales and $700,000,000 in fixed assets. Currently, the company's fixed assets are operating at 75% of capacity. The data hasbeen collected the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.Open spreadsheeta. What level of sales could Earleton have obtained if it had been operating at full capacity? Write out your answer completely. Round your answer to the nearest cent.$b. What is Earleton's target fixed assets/sales ratio? Round your answer to two decimal places.1112c. If Earleton's sales increase 35%, how large of an increase in fixed assets will the company need to meet its target fixed assets/sales ratio? Write out your answercompletely. Do not round intermediate calculations. Round your answer to the nearest dollar.$%Check My WorkReset Problem1 Excess capacity2345SalesFixed assets% Fixed assets capacity678910 Calculation of Target Fixed Assets-to-Sales Ratio:Target fixed assets-to-sales ratioCacluation of Full Capacity Sales:Full capacity sales% Sales increaseA13141516 New sales level1718Calculation of Fixed Assets Increase Needed:Increase in fixed assetsB$2,000,000,000.00$700,000,000.0075.00%35.00%сDFormulas#N/A#N/A#N/A#N/A

Data given: Sales=$2,000,000,000 Fixed Assets=$ 7,00,000,000 Current operating capacity=75%

Answered: Excel Online Structured Activity:…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Required information [The following information applies to the questions displayed below.] Megamart provides the following information on its two investment centers. Investment Center Electronics Income $ 3,114,000 2,261,000 Average Assets $ 17,300,000 13,300,000 Sporting goods Sales $ 41,520,000 18,088,000 1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 11% of average assets. Compute residual income for each center. Which center generated the most residual income? 3. Assume the Electronics center is presented with a new investment opportunity that will yield a 14% return on investment. Should the new investment opportunity be accepted? The target return is 11%. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute return on investment for each center. Using return on investment, which center is most efficient…
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