Question

Wood Refinishers currently has $298,900 in sales and is operating at 86 percent of the firm's capacity. The dividend payout ratio is 40 percent and cost of goods sold is $211,300. What is the full capacity level of sales

Answer 1

Answer:

$347,558.14

Explanation:

86% of full capacity = 298,900

100% of full capacity will be = $298,900 * 100/86

100% of full capacity = $347,558.14

Hence, the full capacity level of sales is $347,558.14