Alyeska Services Company, a division of a major oil company, provides various se
ID: 2532577 • Letter: A
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:
36,100,000
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.)
Sales $ 17,100,000 Net operating income $ 6,000,000 Average operating assets $36,100,000
Explanation / Answer
Answer
1.The margin for Alyeska Services Company:
=(Net Operating Income/Sales)*100
=(6,000,000 / 17,100,000) *100
=35.08%
2.The turnover for Alyeska Services Company
=Net sales / Average operating assets
=17,100,000 / 36,100,000
=0.47
3. The return on investment (ROI) for Alyeska Services Company:
ROI = Net Income / Average operating assets
ROI = 6,000,000 / 36,100,000
ROI = 16.62%
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