Assume a Firm Is Currently Operating at 98 Percent of Capacity

Multiple Choice

Assume a firm is currently operating at 98 percent of capacity with sales of $28,400. Next year, sales are projected to increase to $35,000. What is the projected addition to fixed assets if the firm currently has fixed assets of $16,900 and total assets of $24,600?

A) $0
B) $3,511
C) $2,629
D) $580
E) $1,688