If net sales revenue and the average book value of fixed assets both rise 5%:
A)the fixed asset turnover ratio will rise.
B)the fixed asset turnover ratio will fall.
C)the fixed asset turnover ratio will stay the same.
D)the impact on the fixed asset turnover ratio cannot be determined since the beginning values are unknown.

Question

Quizplus · Accepted Answer

Fixed Asset Turnover Ratio = Net sales ÷ Average net fixed assets.
If both the numerator and the denominator rise by the same %,the ratio will not change.

If Net Sales Revenue and the Average Book Value of Fixed