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value: 1.00 points Alyeska Services Company, a division of a major oil company,

ID: 2581119 • Letter: V

Question

value: 1.00 points 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 $17,400,000 6,200,000 $36,200,000 Required 1. Compute the margin for Alyeska Services Company. (Round your percentage answer to 2 decimal Margin 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) urnover 3. Compute the return on investment (ROI) 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

Explanation / Answer

1. Margin = Net Operating Income / Sales *100

= $ 6,200,000 / $ 17,400,000 *100

= 35.63%

2. Turnover = Sales / Average Operating Assets

= $ 17,400,000 / $ 36,200,000

= 0.48

3. ROI = Net Operating Income / Average Operating Assets*100

= $ 6,200,000 / $36,200,000 *100

= 17.13%