What target fa and sales ratio should the company set

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Reference no: EM131578455

Last year Nymphe Technologies had $500 million of sales and $270 million of fixed assets, so its FA/Sales ratio was 60%. However, its fixed assets were used at only 72% of capacity. While forecasting the results for the next year, the company wants to set its target Fixed Assets/Sales ratio at the level it would have realized had it been operating at full capacity. What target FA/Sales ratio should the company set?

Reference no: EM131578455

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