If a firm is at full-capacity sales, it means the firm is at the maximum level of production possible without increasing:

A) Net working capital.
B) Cost of goods sold.
C) Inventory.
D) Fixed assets.
E) The debt ratio.

Full-capacity Sales

The maximum sales level a company can achieve with its current operational assets without additional investment.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, purchased for operational use and not expected to be converted into cash in the short term.

Production Level

The quantity of goods or services that a company produces within a given period, often directly affecting revenues and profitability.