Compute the margin and turnover ratios for last year

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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.

Reference no: EM13939679

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