3. Excess capacity adjustments Water and Power Co. (W&P) had sales of $1,400,000 last year on fixed assets...

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3. Excess capacityadjustments
Water and Power Co. (W&P) had sales of $1,400,000 last yearon fixed assets of $330,000. Given that W&P’s fixed assets werebeing used at only 93% of capacity, then the firm’s fixed assetturnover ratio was ……………………..?
How much sales could Water and Power Co. (W&P) havesupported with its current level of fixed assets?
$1,430,107
$1,279,570
$1,505,376
$1,806,451
When you consider that W&P’s fixed assets were beingunderused, what should be the firm’s target fixed assets to salesratio?
26.30%
21.92%
18.63%
20.82%
Suppose W&P is forecasting sales growth of 18% for thisyear. If existing and new fixed assets are used at 100% capacity,the firm’s expected fixed assets turnover ratio for this year is…………………….?

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3. Excess capacityadjustmentsWater and Power Co. (W&P) had sales of $1,400,000 last yearon fixed assets of $330,000. Given that W&P’s fixed assets werebeing used at only 93% of capacity, then the firm’s fixed assetturnover ratio was ……………………..?How much sales could Water and Power Co. (W&P) havesupported with its current level of fixed assets?$1,430,107$1,279,570$1,505,376$1,806,451When you consider that W&P’s fixed assets were beingunderused, what should be the firm’s target fixed assets to salesratio?26.30%21.92%18.63%20.82%Suppose W&P is forecasting sales growth of 18% for thisyear. If existing and new fixed assets are used at 100% capacity,the firm’s expected fixed assets turnover ratio for this year is…………………….?