Margin, Turnover, Return on Investment, Average Operating Assets

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

Line Item Description	Amount
Sales	$836,280,000
Less: Variable expenses	556,737,000
Contribution margin	$279,543,000
Less: Fixed expenses	193,160,000
Operating income	$86,383,000

At the beginning of last year, the company had $38,685,000 in operating assets. At the end of the year, the company had $41,376,000 in operating assets.

Required:

1. Compute average operating assets. fill in the blank 1 of 1$

2. Compute the margin (as a percent) and turnover ratios for last year. If required, round your answers to two decimal places. Margin fill in the blank 1 of 2 % Turnover fill in the blank 2 of 2

3. Compute ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places. fill in the blank 1 of 1 %

4. ROI measures profit earned per fill in the blank 1 of 3

dollar of inventorydollar of investmentdollar of sales

. The greater the ROI the fill in the blank 2 of 3

moreless

efficiently the company is generating fill in the blank 3 of 3

dividendsgross salesincome

from its assets.

5. Conceptual Connection: Nakamura Company's ROI is relatively high. Select one of the reasons this may be the case.