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What level should rowland set its target fixed assets

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Last year Rowland Tech had $500,000 of sales and $200,000 of fixed assets, so its FA/Sales ratio was 40%. However, its fixed assets were used at only 60% of capacity. Now the company is planning its financial forecast for the coming year. At what level should Rowland set its target fixed assets/sales ratio?

Reference no: EM132073461

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