Calculate the projected fixed assets needed given the following information: current sales = $25,000; current sales capacity = 80%; current fixed assets = $15,000; projected future sales = $40,000.

A) $5,000
B) $20,200
C) $4,200
D) $19,200
E) $5,200

Projected Fixed Assets

Estimates of the value of long-term assets that a company plans to acquire and use for more than one year, for purposes such as production or administration.

Sales Capacity

The maximum amount of sales a company can achieve within a given period, based on its resources and market demand.

Future Sales

Projected revenue a company expects to generate from its operations in a future period.