20. Alyeska Services Company, a division of a major oil company, provides variou

Question

20. 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 $18,000,000

Net operating income $6,000,000    

Average operating assets $36,800,000  

Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.)

Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)

Explanation / Answer

1. Margin 6,000,000/18,000,000    =    33.33   %

2. Turn over         =   18,000,000/-

3. ROI =   6,000,000/ 36,800,000    = 16.30 %

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