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Window Help Safari File Edit View History Bookmarks w ezto.mheducation.com 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 conceming the most recent year appear below Sales Net operating income Average operating assets $17,300,000 S 6,100,000 $35,100,000 Required: 1. Compute the margin for Alyeska Services Company. (Round your percentage answer to 2 decimal places (Le., 0.1234 should be entered as 12.34)) 2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.) 3. Compute the retum on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to 2 decimal places (Le., 0.1234 should be entered as 12.34))

Explanation / Answer

1. Margin = Net Operating Income / Sales *100

= $ 6100000 / $ 17300000 *100

= 35.26%

Hence the correct answer is 35.26%

2. Turnover = Sales / Average Operating Assets

= 17300000 / 35100000

= 0.49

Hence the correct answer is  0.49

3. ROI = Margin * Turnover

= 35.26% * 0.49

= 17.28%

Hence the correct answer is  17.28%

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