Assume present actual sales of Delta Corporation are Rs 7.5 million. Delta has used only 75 percent of its fixed assets. What are Delta's full capacity sales?

Delta Corporation’s full capacity sales can be calculated using the degree of capacity utilization formula:

$$\text{Capacity Utilization}=\frac{\text{Actual Sales}}{\text{Full Capacity Sales}}\times 100$$

Given:

• Actual Sales = Rs. 7.5 million
• Fixed assets utilized = 75%

Since fixed assets are underutilized by 25%, we assume sales are directly proportional to capacity utilization. Thus:

$$75\%=\frac{7.5}{\text{Full Capacity Sales}}⟹\text{Full Capacity Sales}=\frac{7.5}{0.75}=10$$

Final Answer: Rs. 10 million