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.