EXERCISE $9-$I Compute the Return on Investment $($ROI$)[$LO$9-$I$]$

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 $.......................$ $$7,500,000$

Net operating income $...........$ $$600,000$

Average operating assets $.......$ $$5,000,000$

Performance Measurement in Decentralized Organizations

Required:

Compute the margin for Alyeska Services Company.

Compute the turnover for Alyeska Services Company.

Compute the return on investment $($ROI$)$ for Alyeska Services Company.