Compute the margin and turnover ratios for last year

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Reference no: EM13939679

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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