Fixed asset turnover ratio Obj. 7 Select financial statement data for two recent years for DePuy Company are as follows:

20Y8 20Y7 Sales $5,510,000 $4,880,000 Fixed assets:

Beginning of year 1,600,000 1,450,000 End of year 2,200,000 1,600,000

a. Determine the fixed asset turnover ratio for 20Y7 and 20Y8.

b. Does the change in the fixed asset turnover ratio from 20Y7 to 20Y8 indicate a favorable or an unfavorable change?

AppendixLO1