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 $ 18,000,000 Net operating income $ 5,100,000 Average operating assets $ 35,800,000

Explanation / Answer

Margin=Net operating income/Sales

=(5,100m000/18,000,000)=28.33%

Turnover=Sales/Average operating assets

=(18,000,000/35,800,000)=0.50

ROI=Net operating income/Average operating assets

=(5,100,000/35,800,000)=14.25%

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