Assume that Gatsby Enterprises has sales of $83 million and fixed assets of $22.4 million in 2013. The corporation utilizes the percent-of-sales method of financial forecasting

If Gatsby is expected to generate sales of $94 million in 2014, what will the firm's investment in fixed assets be? The minimum fixed asset expansion costs $4,000,000.
A) $19.8 million
B) $26.4 million
C) $16.2 million
D) $25.4 million


Answer: B

Business

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