SalesTargetfixedassets=FullcapacitysalesActualfixedaseets Finally, management would use the target fixed assets ratio with the projected sales to calculate the firm's required level of fixed assets as follows: Requiredleveloffixedassets=(Targetfixedassets/Sales)(Projectedsales) Quantitative Problem 2: Mitchell Manufacturing Company has $1,000,000,000 in sales and $320,000,000 in fixed assets. Currently, the company's fixed assets are operating at 80% of capacity. a. What level of sales could Mitchell have obtained if it had been operating at full capacity? Do not round intermediate calculations. Round your answer to the nearest dollar. $ b. What is Mitchell's Target fixed assets/Sales ratio? Do not round intermediate calculations. Round your answer to two decimal places. % $ Corporate Valuation and Financial Planning: The AFN Equation . The AFN equation is written as follows: AFN=(A0/S0)S(L0/S0)S(M)(S1)(1Payoutratio) The AFN equation shows the relationship of $