Excess capacity adjustments

Osato Chemicals Inc. had sales of $$1,790,000$ last year on fixed assets of $$345,000.$ Given that Osato's fixed assets were being used at only $94\%$ of

capacity, then the firm's fixed asset turnover ratio was

x$.($Note: Round your answer to two decimal places.$)$

How much sales could Osato Chemicals Inc. have supported with its current level of fixed assets? $($Note: Round your answer to the nearest whole

number.$)$

$$1,713,830$

$$1,999,468$

$$1,809,042$

$$1,904,255$

When you consider that Osato's fixed assets were being underused, what should be the firm's target fixed assets to sales ratio? $($Note: Round your

answer to two decimal places.$)$

$17\mathrm{.}21\%$

$18\mathrm{.}12\%$

$19\mathrm{.}03\%$

$16\mathrm{.}31\%$

Suppose Osato is forecasting sales growth of $18\%$ for this year. If existing and new fixed assets are used at $100\%$ capacity, the firm's expected fixed$-$

assets turnover ratio for this year i:

$.($Note: Round your answer to two decimal places.$)$