Question: Select financial statement data for two recent years for Davenport Company are as follows: 20Y5 20Y4 Sales $1,668,000 $1,125,000 Beginning of year $670,000 $580,000 End
Select financial statement data for two recent years for Davenport Company are as follows:
| 20Y5 | 20Y4 | |
| Sales | $1,668,000 | $1,125,000 |
| Beginning of year | $670,000 | $580,000 |
| End of year | $720,000 | $670,000 |
a) Determine the fixed asset turnover ratio for 20Y4 and 20Y5.
b) Does the change in the fixed asset turnover ration from 20Y4 and 20Y5 indicate a favorable or an unfavorable change?
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