Answer:
The correct answer for option (1) is 31.72%, for option (2) is 0.52 times and for option (3) is 16.43%.
Explanation:
According to the scenario, the given data are as follows:
Sales = $18,600,000
Net operating income = $5,900,000
Average operating assets = $35,900,000
(1). We can calculate the margin for Alyeska service company by using following formula:
Margin = Net operating income ÷ Sales
= $5,900,000 ÷ $18,600,000
= 0.3172 or 31.72%
(2). We can calculate the turnover for Alyeska service company by using following formula:
Turnover = Sales ÷ Average operating assets
= $18,600,000 ÷ $35,900,000
= 0.52 Times
(3). We can calculate the ROI for Alyeska service company by using following formula:
ROI = Net operating income ÷ Average operating assets
= $5,900,000 ÷ $35,900,000
= 0.1643 or 16.43%
