Last Year Jain Technologies Had $250 Million of Sales and $100

question 35

Multiple Choice

Last year Jain Technologies had $250 million of sales and $100 million of fixed assets,so its Fixed Assets/Sales ratio was 40%.However,its fixed assets were used at only 75% of capacity.Now the company is developing its financial forecast for the coming year.As part of that process,the company wants to set its target Fixed Assets/Sales ratio at the level it would have had had it been operating at full capacity.What target Fixed Assets/Sales ratio should the company set?

• A)28.5%
• B)30.0%
• C)31.5%
• D)33.1%
• E)34.7%

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean.

Standard Error of Mean

The standard deviation of the sampling distribution of the sample mean, representing how far the sample mean is likely to be from the population mean.

Effect Size

A quantitative measure of the magnitude of the experimental effect from a study.

Standard Error of Mean

The estimation of the standard deviation of the sample mean, reflecting the variability of the sample mean from the population mean.