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

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%