Alyeska Services Company, a division of a major oil company, provides various se

Question

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:

Sales $ 17,200,000 Net operating income $ 6,300,000 Average operating assets $ 35,800,000
Required 1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.) 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.) 1. Margin 2. Turnover 3. ROI

Explanation / Answer

Margin=Net operating income/Sales

=(6,300,000/17,200,000)=36.63%(Approx).

Turnover=Sales/Average operating assets

=(17,200,000/35,800,000)=0.48(Approx).

ROI=Net operating income/Average operating assets

=(6,300,000/35.800,000)=17.60%(Approx).

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