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:

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	$	18,500,000
Net operating income	$	5,800,000
Average operating assets	$	35,100,000

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.)

Explanation

1.

Margin	=	Net operating income
		Sales
	=	$5,800,000	= 31.35%
		$18,500,000

2.

Turnover	=	Sales
		Average operating assets
	=	$18,500,000	= 0.53
		$35,100,000

3.

ROI	= Margin × Turnover
	= 31.35% × 0.53 = 16.62%

Thanks