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 Net operating income Average operating assets $18,300,000 $ 4,900,000 $36,700,000 Required: 1. Compute the margin for Alyeska Services Company. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) Margin 26.78 % 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) Turnover 3. Compute the return on investment (ROl) for Alyeska Services Company. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) ROI 7%

Explanation / Answer

1.Margin=Net operating income/Sales

=(4,900,000/18,300,000)=26.78%

2.turnover=Sales/Average operating assets

=(18,300,000/36,700,000)=0.50

3.ROI=Net operating income/Average operating assets

=(4,900,000/36,700,000)=13.35%

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