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Question
Warsaw Incorporated is currently operating at 80% of capacity. The sales of Warsaw were $25 million this year and their net plant and equipment were valued at $100 million. Sales are expected to increase to $35 million next year. How much additional plant and equipment will Warsaw need to acquire to keep production up with the new level of sales?
a. $20 million
b. $15 million
c. $12 million
d. $10 million
e. No additional plant and equipment is needed.
Answer
This answer is hidden. It contains 215 characters.
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