Reference no: EM132506263

Excess capacity adjustments

Question 1. Monk Consortium Corp. (Monk-Con) had sales of $1,720,000 last year on fixed assets of $380,000. Given that Monk-Con's fixed assets were being used at only 92% of capacity, then the firm's fixed asset turnover ratio was x. (Note: Round your answer to two decimal places.)

Question 2. How much sales could Monk Consortium Corp. (Monk-Con) have supported with its current level of fixed assets? (Note: Round your answer to the nearest whole number.)

$1,589,130

$2,243,478

$1,682,609

$1,869,565

Question 3. When you consider that Monk-Con's fixed assets were being underused, what should be the firm's target fixed assets to sales ratio? (Note: Round your answer to two decimal places.)

17.28%

24.40%

20.33%

18.30%

Question 4. Suppose Monk-Con 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: a. 5.90x, b. 4.92x, c. 4.43x, d. 4.18x .(Note: Round your answer to two decimal places.)