Directions: Use the information below to answer the following question.

$20$Y$1$

$20$Y$2$

$20$Y$3$

Sales

$$824,000$

$$956,000$

$$1,120,000$

Net fixed assets

$$226,000$

$$239,000$

$$251,000$

Sales $/$ net fixed assets ratio $3\mathrm{.}654\mathrm{.}004\mathrm{.}46$

Assuming no revaluation of fixed assets has occurred, which one of the following is the correct conclusion to draw from this trend?

The business is becoming less productive and may need to replace fixed assets to gain efficiency.

The business has increased its productivity and may need to add fixed assets to support sales growth.

The business has purchased additional fixed assets at the same rate that sales are growing.

The business has used a double$-$declining rate of depreciation.