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Walter Industries has $5 billion in sales and $1.7 billion in fixed assets

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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.

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

b. What is Walter's target fixed assets/sales ratio?

c. If Walter's sales increased 12%, how large of an increase in fixed assets would the company need in order to meet its target fixed assets/sales ratio?

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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.

Sales = $5,000,000,000; FA = $1,700,000,000; FA are operated at 90% ...

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Manal Elkhoshkhany, MBA
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  • MBA, California State University, Sacramento
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