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

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%

Correct Answer:

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