Fixed asset turnover ratio

Select financial statement data for two recent years for Davenport Company are as follows:

	20Y5		20Y4
Sales	$1,849,500		$1,125,000
Fixed assets:
Beginning of year	670,000		580,000
End of year	700,000		670,000

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?

FavorableUnfavorable