Western Gas & Electric Co. (WG&E) had sales of $1,790,000 last year on fixed assets of $330,000. Given that WG&Es fixed assets were being used at only 92% of capacity, then the firms fixed asset turnover ratio was

How much sales could Western Gas & Electric Co. (WG&E) have supported with its current level of fixed assets?

$1,751,087

$1,945,652

$2,042,935

$1,848,369

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

16.11%

15.26%

17.81%

16.96%

Suppose WG&E is forecasting sales growth of 22% 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