Last year national aeronautics had a fasales ratio of 40, Financial Management

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Last year national aeronautics had a fasales ratio of 40

Last year National Aeronautics had a FA/Sales ratio of 40%, comprised of $250 million of sales and $100 million of fixed assets. 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 FA/Sales ratio should the company set?

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Financial Management: Last year national aeronautics had a fasales ratio of 40

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