Financial statement data for years ending December 31 for Fallon Company are shown below.

a. Determine the fixed asset turnover ratio for 2012 and 2011.
b. Does the change in the fixed asset turnover ratio from 2011 to 2012 indicate a favorable or an unfavorabletrend?

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2012 $740,000 2011 $520,000 Net sales Fixed assets: Beginning of year End of year 425,000 500,000 375,000 425,000