Margin, Turnover, Return on Investment, Average Operating Assets

Elway Company provided the following income statement for the last year:

Sales

$$782,870,000$

Less: Variable expenses

Contribution margin

Less: Fixed expenses

Operating income

At the beginning of last year, Elway had $$38,653,000$ in operating assets. At the end of the year, Elway had $$41,355,000$ in operating assets.

Required:

Compute average operating assets.

Compute the margin $($as a percent$)$ and turnover ratios for last year. If required, round your answers to two decimal places.

Margin

$\%$

Turnover

Compute ROI as a percent. Use the part $2$ final answers in these calculations and round the final answer to two decimal places.

$\%$

CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company is relatively high $($as compared to the lower ROI of a typical manufacturing company$).$

recognized as assets $($e$.$g$.$ human talent$).$

recognized as assets $($e$.$g$.$ goodwill$).$