5E 2. Excess capacity adjustmentsOsato Chemicals Inc. had sales of $1,720,000 last year on fixed assets of $330,000. Given that Osato's fixed assets were being used at only 96% ofcapacity, then the firm's fixed asset turnover ratio wasHow much sales could Osato Chemicals Inc. have supported with its current level of fixed assets?$1,702,084$1,612,500$1,433,334$1,791,667When you consider that Osato's fixed assets were being underused, what should be the firm's target fixed assets to sales ratio?14.74%16.58%17.50%18.42%Suppose Osato is forecasting sales growth of 19% for this year. If existing and new fixed assets are used at 100% capacity, the firm's expected fixedassets turnover ratio for this year is

Fixed asset turnover ratio is the ratio which calculate or measure the efficiency of the assets…

2. Excess capacity Osato Chemicals Inc. had sales of $1,720,000 last year on fixed assets of $330,000. Given that Osato's fixed assets were being used at only 96% 0 capacity, then the firm's fixed asset turnover ratio was How much sales could Osato Chemicals Inc. have supported with its current level of fixed assets? $1,702,084 $1,612,500 $1,433,334

2. Excess capacity Osato Chemicals Inc. had sales of $1,720,000 last year on fixed assets of $330,000. Given that Osato's fixed assets were being used at only 96% 0 capacity, then the firm's fixed asset turnover ratio was How much sales could Osato Chemicals Inc. have supported with its current level of fixed assets? $1,702,084 $1,612,500 $1,433,334

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 14E

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