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	$	18,700,000
Net operating income	$	5,200,000
Average operating assets	$	36,200,000

Required:
1.	Compute the margin for Alyeska Services Company.

Explanation:
1.

Margin =	Net operating income
	Sales
=	$5,200,000	= 27.81%
	$18,700,000

2.

Turnover =	Sales
	Average operating assets
=	$18,700,000	= 0.52
	$36,200,000

3.

ROI	= Margin × Turnover
	= 27.81% × 0.52 = 14.46%