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
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 | $ 17,500,000 |
---|---|
Net operating income | $ 5,600,000 |
Average operating assets | $ 36,500,000 |
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.)
CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below:
Sales | $ 3,560,000 |
---|---|
Net operating income | $ 284,800 |
Average operating assets | $ 890,000 |
The following questions are to be considered independently.
Exercise 10-13 Part 3 (Algo)
3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,700,000 increase in sales, requiring a $162,000 increase in average operating assets, with a resulting $438,450 increase in net operating income. What would be the companys ROI in this scenario?
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