TransCan Industries has been operating at 60 percent capacit

TransCan Industries has been operating at 60 percent capacity the past few years. In each of these years, TransCan generated sales of $5.4 million. By what percentage can TransCan increase its sales before full capacity is reached?

Solution

Here capacity is 60%, sale is 5.4

when capcity is 1%, then sale is 5.4/60

and when capacity is full i.e. 100% , then sale is 5.4 x 100/60 = 5.4 x 5/3 = 1.8 x 5 = 9

So total increase in sale = 9- 5.4 = $3.6 million

and let x% of 5.4 is $3.6

or 5.4x/100 = 3.6

or 5.4x = 3.6(100)= 360

or x= 360/5.4 = 66.67

thatl means Transcan can increase it sales by 66.67 %.

That is required last answer.