James Mfg Is Currently Operating at Only 86 Percent of Fixed

Multiple Choice

James Mfg. is currently operating at only 86 percent of fixed asset capacity. Fixed assets are $387,000. Current sales are $510,000 and are projected to grow to $664,000. What amount must be spent on new fixed assets to support this growth in sales?

A) $0
B) $22,654
C) $46,319
D) $79,408
E) $93,608