Western Gas & Electric Co. (WG&E) had sales of $1,790,000 last year on fixed assets of $380,000. Given that WG&E’s fixed assets were being used at only 95% of capacity, then the firm’s fixed asset...

Western Gas & Electric Co. (WG&E) had sales of $1,790,000 last year on fixed assets of $380,000. Given that WG&E’s fixed assets were being used at only 95% of capacity, then the firm’s fixed asset turnover ratio was     .

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

When you consider that WG&E’s fixed assets were being underused, what should be the firm’s target fixed assets to sales ratio?

Suppose WG&E is forecasting sales growth of 20% for this year. If existing and new fixed assets are used at 100% capacity, the firm’s expected fixed assets turnover ratio for this year is    ?