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Margin, Turnover, Return on Investment, Average Operating Assets Nakamura Company provided the following income statement for the last year: Sales Less: Variable expenses Contribution margin
Margin, Turnover, Return on Investment, Average Operating Assets Nakamura Company provided the following income statement for the last year: Sales Less: Variable expenses Contribution margin Less: Fixed expenses Operating income At the beginning of last year, the company had $38,669,000 in operating assets. At the end of the year, the company had $41,335,000 in operating assets. Required: 1. Compute average operating assets. Margin Turnover $833,910,000 543,864,000 $290,046,000 197,298,000 2. Compute the margin (as a percent) and turnover ratios for last year. If required, round your answers to two decimal places. % $92,748,000 4. ROI measures profit earned per from its assets. 3. Compute ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places. % The greater the ROI the efficiently the company is generating 5. Conceptual Connection: Nakamura Company's ROI is relatively high. Select one of the reasons this may be the case.
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