Fixed asset turnover ratio OBJ. 7 Financial statement data for years ending December 31 for DePuy Company follows:

2016 2015 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 2016 and 2015.

b. Does the change in the fixed asset turnover ratio from 2015 to 2016 indicate a favorable or an unfavorable trend?