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Walter Industries has $5 billion in sales and $1.7 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity. ANSWER

Walter Industries has $5 billion in sales and $1.7 billion in fixed assets. Currently, the company's fixed assets are operating at 90% of capacity.

ANSWER IN NUMERICAL VALUE ONLY (NO $ SIGNS, COMMAS, ETC.).

ROUND TO TWO DECIMAL PLACES

  1. What level of sales could Walter Industries have obtained if it had been operating at full capacity?

  1. What is Walter's Target fixed assets/Sales ratio?If Walter's sales increase 12%, how large of an increase in fixed assets will the company need to meet its Target fixed assets/Sales ratio? $

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