Last year handorf-zhu inc. had $850 million of sales, and it had $425 million of fixed assets that were used at only 85% of capacity. what is the maximum sales growth rate the company could achieve before it had to increase its fixed assets?

(a) 19.06%
(b) 18.88%
(c) 17.65%
(d) 16.94%

(C) 17.65%

Explanation:

For computing the maximum sales growth rate, first we have to determine the full capacity sales which are shown below:

= Sales value ÷ capacity percentage

= $850 million ÷ 85%

= $1,000 million

Now the maximum sales growth rate would be

= (Full capacity sales - actual sales) ÷ (actual sales)

= ($1,000 million - $850 million) ÷ ($850 million)

= $150 million ÷ $850 million

= 17.65%

Homologous organs can be described as structures having the same internal organization.

The forelimbs of many vertebrates have the same arrangement of bones. Some of these vertebrates having similar organisation of forelimbs are bird wings, bat wings, flippers, and human arms and legs.

Although the function of these limbs yet they have similar internal organisation.

A bird's wing helps the bird in flying. Bat wing helps the bat to fly. Human arm and legs are used for movement. Flippers help in movement in water.