Western Gas & Electric Co. (WG&E) had sales of $1,550,000 last year on fixed assets of $270,000. Given that WG&E’s fixed assets were being used at only 94% 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 22% 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?

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