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

question 7

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) 13.3%
• B) 14.1%
• C) 16.0%
• D) 18.2%
• E) 18.4%

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Definitions:

Organizational Goals

The strategic objectives or aims that an organization seeks to achieve, which guide its operations and decision-making processes.

Divergent Thinking

A cognitive process used to generate creative ideas by exploring many possible solutions.

Decision Structure

The framework or methods used by organizations or individuals to make and implement decisions.

Employee Involvement

A workplace strategy that allows employees to participate in decision-making processes and contribute to problem-solving relevant to their work.