Osato Chemicals Inc. had sales of $1,550,000 last year on fixed assets of $380,000. Given that Osatos fixed assets were being used at only 92% of capacity, then the firms fixed asset turnover ratio was (4.4869x/3.87505x/3.46715x/4.079x)

How much sales could Osato Chemicals Inc. have supported with its current level of fixed assets?

a. $1,432,066

b. $2,021,740

c. $1,684,783

d. $1,600,544

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

a. 27.06%

b. 19.17%

c. 22.55%

d. 21.42%

Suppose Osato is forecasting sales growth of 21% 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 (4.43x/5.321x/3.769x/4.212x)?