Nagel's Industries has a capital intensity ratio of 1.26 at full operating capacity. This means that the firm:
A) Has $1.26 in net fixed assets for every $1 in sales.
B) Has $1.26 in net fixed assets for every $1 in net income.
C) Needs $1.26 in total assets to generate $1 in net income.
D) Requires $1.26 in total assets to generate $1 in sales.
E) Has $1.26 in sales for every $1 in total assets.
Correct Answer:
Verified
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