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5. Excess capacity adjustments Monk Consortium Corp. (Monk-Con) had sales of $1,720,000 last year on fixed assets of $395,000. Given that Monk-Cons fixed assets were being used at only 96% of capacity, then the firms fixed asset turnover ratio was . (Note: Round your answer to two decimal places.) How much sales could Monk Consortium Corp. (Monk-Con) have supported with its current level of fixed assets? O $1,612,500 o $2,060,417 o $1,702,084 o $1,791,667 When you consider that Monk-Cons fixed assets were being underused, what should be the firms target fixed assets to sales ratio? О 23.15% О 26.46% О 22.05% o 24,26% Suppose Monk-Con is forecasting sales growth of 18% for this year. If existing and new fixed assets are used at 100% capacity, the firms expected fixed-assets turnover ratio for this year is

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Home nert Page Layout Formulas Data Review View dd-Ins s Cut aCopy Σ AutoSum Wrap Text B 1 프 . Ej-., Δ. : r-ー 逻锂函Merge & Center. $, % , 弼鼎Conditional Format . Cell Insert Delete Format Sort &Find & Format Painter Formatting as Table Styles2 Clear Clipboard Alignment Number Cells Edting N116 98 monk ANS 1 AT 96 % CAPACITY AT 100% CAPACITY FIXED ASSETS FIXED ASSETS 395000 411458.33 (395000 100/96) 100 101 102 103 104 105 106 107 108 109 110 FIXED ASSETS TURNOVER RATIC 4.18 (1720000/411458.33) (SALES/FIXED ASSETS) ANS 2 SALES AT CURRENT LEVEL OF FIXED ASSETS 1791667 1720000 100/96 ANS 3 TARGET FIXED ASSETS TO SALES RATIO 22.05% 395000/|791667 ANS 4 NEXT YEAR SALES FIXED ASSETS REQUIRED 2046800 1720000 1.18 470050 (2046800/1791667)*411458.33) 4.35 (2046800/470050) 112 113 114 115 116 ANS 5 FIXED ASSETS TURNOVER RATIO . . 14 ‘ | YIELD SPOT Sheet2 AFN BANKING . NO TE BIDDING, UNDERWRITING EUAC AW PM LIFE LP, Ip, MRP, INFLATION YIELD WARRAN Trefund bond CLEAN INVOICE PRICE erences: GC323 02:17

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