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

question 26

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 40% 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) 19.0%
• B) 14.6%
• C) 16.0%
• D) 15.4%
• E) 14.2%

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