Walter Industrieshas $5 billion in sales and $1.7 billion in fixed assets.Currently, the company's fixed assets are operating at 90% ofcapacity.
What level of sales could Walter Industries have obtained if it had been operating at fullcapacity?
What is Walter's target fixed asset/Sales ratio?
If Walter's sales increase 12% how large of an increase in fixed assets will the company need tomeet it target fixed assets/sales ratio?