Seere Company provided the following income statement for last year.
|
Margin; Turnover;
|
Sales
|
$240,000
|
|
ROI; Average
|
Less: Variable expenses
|
195,000
|
|
Operating Assets
|
Contribution margin
|
$ 45,000
|
|
LO3
|
Less: Fixed expenses
|
37,800
|
|
|
Operating income
|
$ 7,200
|
At the beginning of last year, Seere had $78,650 in operating assets. At the end of the year, Seere had $81,350 in operating assets.
Required
1. Compute average operating assets.
2. Compute the margin and turnover ratios for last year. Compute ROI.