MARGIN, TURNOVER, RETURN ON INVESTMENT, AVERAGE OPERATING ASSETS
Elway Company provided the following income statement for last year:
|
Sales
|
$285,000
|
|
Less: Variable expenses
|
171,000
|
|
Contribution margin
|
$114,000
|
|
Less: Fixed expenses
|
91,200
|
|
Operating income
|
$ 22,800
|
At the beginning of last year, Elway had $180,000 in operating assets. At the end of the year, Elway had $200,000 in operating assets.
Required:
1. Compute average operating assets.
2. Compute the margin and turnover ratios for last year.
3. Compute ROI.