Reference no: EM132045533

Question - Margin, Turnover, Return on Investment, Average Operating Assets

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

Sales $1,040,000,000

Less: Variable expenses 700,250,000

Contribution margin $ 339,750,000

Less: Fixed expenses 183,750,000

Operating income $ 156,000,000

At the beginning of last year, Elway had $28,300,000 in operating assets. At the end of the year, Elway had $23,700,000 in operating assets.

Required:

1. Compute average operating assets.

2. Compute the margin (as a percent) and turnover ratios for last year.

3. Compute ROI as a percent.