Newtown Propane had sales of $1,550,000 last year on fixed assets of $345,000. Given that Newtowns fixed assets were being used at only 93% of capacity, then the firms fixed asset turnover ratio was ___________.

A.) 4.493x C.) 3.81905x

B.) 4.26835x D.) 4.71765x

How much sales could Newtown Propane have supported with its current level of fixed assets?

A.) $1,333,334

B.) $1,916,667

C.) $1,666,667

D.) $1,583,334

When you consider that Newtowns fixed assets were being underused, what should be the firms target fixed assets to sales ratio?

A.) 19.67%

B.) 23.80%

C.) 20.70%

D.) 16.56%

Suppose Newtown is forecasting sales growth of 20% for this year. If existing and new fixed assets are used at 100% capacity, the firms expected fixed assets turnover ratio for this year is____________?

A.) 4.589x C.) 3.865x

B.) 5.556x D.) 4.831x