Question

0/1 pts Incorrect Question 21 A low fixed asset turnover ratio often indicates that marketing efforts are ineffective the form is keeping expenses low the homecently using its current asset the form is efficiently using its total assets 0/1 pts Incorrect Question 22 Larry's Lab has sales of $35,750, net fixed assets of $14.500, current assets of $12,300, and cost of goods sold of $30,000. Which of the following is the fixed asset turnover ratio for the business? 247 times 1.19 times 2.91 times 1.18 times

Answer 1

21 a low fixed asset turnover ratio generally indicates that a firm does not use its asset effectivily or to its full potential to generate revenue

22) fixed asset turnover ratio is 2.47 times for the business

Explanation:

Fixed asset turnover ration = sales / net fixed asset

= $35750 / $14500

=2.465 times or 2.47 times

this ratio indicates or states that how well the business is using its fixed asset in order to generate the sales for the business.