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Full capacity sales and total operating cost

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King Inc. is currently running at 45% of full capacity. The plant and equipment are currently valued at $145,000,000 and Silver King generated sales of $80,000,000. What is the full capacity sales of King with their current asset.

NJM Inc is a football manufacturer and has fixed operating costs of $400,000 and variable costs of $12 per football. The footballs sell for $35 each and NJM plans to sell 300,000 footballs this year. What is NJM's total operating costs for the year?

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Solution Summary

There are two problems. Solution to first problem calculates full capacity sales. Solution to second problem describes the steps to calculate total operating costs of a firm.

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King Inc. is currently running at 45% of full capacity. The plant and equipment are currently valued at $145,000,000 and Silver King generated sales of $80,000,000. What is the full capacity sales of King with ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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