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Last year, Jain Technologies had $250 million of sales and $100 million of fixed assets, so its 7 FA/sales ratio was 40 percent. However, its

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Last year, Jain Technologies had $250 million of sales and $100 million of fixed assets, so its 7 FA/sales ratio was 40 percent. However, its fixed assets were used at only 75 percent of capacity. Now 8 the company is developing its financial forecast for the coming year. As part of that process, the 9 company wants to set its target fixed assets/sales ratio at the level it would have had had it been 10 operating at full capacity. What target FA/sales ratio (fixed asset turnover ratio) should the company set

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