if-a-company-has-a-fixed-asset-turnover-ratio-of-35-what-does-this-indicate-abou

Question

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

Accepted Answer

The company generates $$3.50 in sales for every 1 of $$fixed assets.

Answer

The company generates $$1.50 in sales for every 1 of $$fixed assets.

Answer

The company generates $$2.50 in sales for every 1 of $$fixed assets.

Answer

The company generates $$5.00 in sales for every 1 of $$fixed assets.