FedEx Corporation and United Parcel Service, Inc. compete in the package delivery business. The major fixed assets

Question:

FedEx and United Parcel Service, Inc. compete in the package delivery business. The major fixed assets for each business include aircraft, sorting and handling facilities, delivery vehicles, and information technology. The sales and average book value of fixed assets reported on recent for each company were as follows:
________________________________________ FedEx ____________ UPS
Sales (in millions) ....................................... $47,453 ............. $58,363
Average book value of fixed assets (in millions) ... 20,213 ................ 18,317
a. Compute the fixed ratio for each company. Round to one decimal place.
b. Which company appears more efficient in using fixed assets?
c. Interpret the meaning of the ratio for the more efficient company.
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