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:

Required:

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 $ 18,700,000 Net operating income $ 4,900,000 Average operating assets $ 36,100,000

Explanation / Answer

1. margin=Net operating income/Sales

=(4,900,000/18,700,000)=26.20%

2. turnover=Sales/Average operating assets

=(18,700,000/36,100,000)=0.52

3.return on investment =Net operating income/Average operating assets

4,900,000/36,100,000=13.57%(Approx).

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.