Three Waters Co. had sales of $1,820,000 last year on fixed assets of $395,000. Given that Three Waterss fixed assets were being used at only 96% of capacity, then the firms fixed asset turnover ratio was __________.

How much sales could Three Waters Co. have supported with its current level of fixed assets?

$1,895,833

$1,516,666

$2,180,208

$2,275,000

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

23.97%

25.01%

20.84%

16.67%

Suppose Three Waters 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 ________ ?