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Sales Margin, Tumover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: $764,740,000 Less: Variable expenses 541,356,000

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Sales Margin, Tumover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: $764,740,000 Less: Variable expenses 541,356,000 Contribution margin $223,384,000 Less: Fixed expenses 198,623,000 Operating income $24,761,000 At the beginning of last year, Elway had $38,658,000 in operating assets. At the end of the year, Elway had $41,345,000 in operating assets, Required: 1. Compute average operating assets 2. Compute the margin (as a percent) and turnover ratios for last year. If required, round your answers to two decimal places Margin % Turnover 3. Compute ROI as a percent. Use the part 2 final answers in these calculations and round the final answer to two decimal places 96 4. ROI measures a company's ability to generate the company is generating from its assets relative to its investment in assets. The greater the ROI, the efficiently 5. CONCEPTUAL CONNECTION Comment on why the Ros for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company) 1. Elway Company might be a service organization with relatively few physical stats required to generate its sales revenue and Income Ror will be higher when the factors that create a company's sales or income are not formally recognized as assets (0.9. human talent), 2. Elway Company might be a service organization with relatively few physical assets required and generates an income much higher than any manufacturing organization Rot will be higher when the factors that create a company's sales or income are not formally recognized as assets (9. human talent) 3. Elway Company might be a service organization with relatively few physical assets required and generates an income much higher than any manufacturing organization, Rot will be higher when the factors that create a company's sales or income are not formally recognized as a goodwill)

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