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Fixed asset turnover ratio
Select financial statement data for two recent years for Davenport Company are as follows:
| | 20Y5 | 20Y4 |
| Sales | $1,872,000 | | $1,179,000 | |
| Fixed assets: | | | | |
| Beginning of year | 700,000 | | 610,000 | |
| End of year | 740,000 | | 700,000 | |
a. Determine the fixed asset turnover ratio for 20Y4 and 20Y5. Round to one decimal place.
| | 20Y5 | 20Y4 |
| Fixed Asset Turnover Ratio | fill in the blank 1 | | fill in the blank 2 | |
b. Does the change in the fixed asset turnover ratio from 20Y4 to 20Y5 indicate a favorable or an unfavorable change?
Favorable or Unfavorable
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