Question

TransCan Industries hes been operating ot 70 percent cepecty the past few yeers. In cach of these years, TransCan genereted sales of $14,00 million. By what percentage can TransCan increase its sales before ful capecity is reached? Round your answer to two decimel places.

Answer 1

TransCan Industries can increase its sales by approximately 42.86% before reaching full capacity.

Step-by-step explanation:

Given that TransCan Industries has been operating at 70% capacity for the past few years and generated sales of $14,000 million each year, we can calculate the full capacity sales as follows:

Full capacity sales = Sales at 70% capacity / 0.70

Full capacity sales = $14,000 million / 0.70 = $20,000 million

Now, we can calculate the percentage increase in sales that TransCan Industries can achieve before reaching full capacity:

Percentage increase = (Full capacity sales - Current sales) / Current sales * 100

Percentage increase = ($20,000 million - $14,000 million) / $14,000 million * 100

Percentage increase = $6,000 million / $14,000 million * 100

Percentage increase ≈ 42.86%