Question

Provide the missing data in the following table for a distributor of martial arts products: (Round "Turnover" and "ROI" answers to 1 decimal place.)

	Division
	Alpha		Bravo		Charlie
Sales			$342,500
Net operating income			$27,400		$32,900
Average operating assets	$390,000
Margin	4	%		%	7	%
Turnover	5.0
Return on investment (ROI)		%	20.0	%	14.0	%

Answer 1

		Division
		Alpha	Bravo	Charlie
	Sales	$ 1,950,000.00	$   342,500.00	$ 470,000.00
	Net operating income	$       78,000.00	$     27,400.00	$     32,900.00
	Average Operating Assets	$       390,000.00	$ 137,000.00	$ 235,000.00
	Margin	4%	8%	7%
	Turnover	5.0	2.5	2.0
	Return on Investment (ROI)	20.0%	20.0%	14.0%
	Explanation
1	Sales = Average Operating Assets x Turnover
2	Net operating income = Sales x Margin
3	Average Operating Assets = Sales / Turnover
4	Margin = Net operating income / Sales
5	Turnover = Sales / Average Operating Assets
6	ROI = Margin x Turnover