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 and turnover ratios for last year.

3. Compute ROI.

4. Briefly explain the meaning of ROI.

5. Comment on why the ROI for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company).