Financial statement data for years ending December 31 for Dennis Company follow:

	Year 2		Year 1
Sales	$1,991,770		$1,650,000
Fixed assets:
Beginning of year	523,000		477,000
End of year	525,300		523,000

a. Determine the fixed asset turnover ratio for Year 1 and Year 2. Round your answers to one decimal place.

	Fixed asset turnover
Year 1	fill in the blank 1
Year 2	fill in the blank 2

b. Does the change in the fixed asset turnover ratio from Year 1 to Year 2 indicate a favorable or an unfavorable change?

FavorableUnfavorable