Last year Canada Corp.had $250 million of sales and $125 million of fixed assets,so its FA/Sales ratio was 50%.However,its fixed assets were used at only 65% 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 FA/Sales ratio should the company set?

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The Answer of Last year Canada Corp.had $250 million of sales and $125 million of fixed assets,so its FA/Sales ratio was 50%.However,its fixed assets were used at only 65% 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 FA/Sales ratio should the company set?

Last Year Canada Corp