If a company has a fixed asset turnover ratio of 3.5, what does this indicate about its sales generation?

• A. The company generates \$1.50 in sales for every \$1 of fixed assets.
• B. The company generates \$3.50 in sales for every \$1 of fixed assets.
• C. The company generates \$2.50 in sales for every \$1 of fixed assets.
• D. The company generates \$5.00 in sales for every \$1 of fixed assets.

Answer: (B)