The following table shows the revenue and average net fixed assets (in millions) for a recent fiscal year for Best Buy and RadioShack:
|
Revenue
|
Average Net
|
|
Best Buy
|
$45,015
|
$3,740
|
|
RadioShack
|
4,225
|
312
|
a. Compute the fixed asset turnover for each company. Round to two decimal places.
b. Which company uses its fixed assets more efficiently? Explain.