Question
1. Bloomer Company has an operating income of $40,000 on revenues of $1,000,000. Average invested assets are $500,000, and Bloomer Company has an 8% cost
1. Bloomer Company has an operating income of $40,000 on revenues of
$1,000,000. Average invested assets are $500,000, and Bloomer Company has
an 8% cost of capital. What is the return on investment?
Answer:___________________________________
2. Bloomer Company has an operating income of $200,000 on revenues of
$1,000,000. Average invested assets are $500,000 and Bloomer Company has
an 8% cost of capital. What is the profit margin?
Answer:___________________________________
3. Bloomer Company has an operating income of $100,000 on revenues of
$1,000,000. Average invested assets are $500,000 and Bloomer Company has
an 8% cost of capital. What is the investment turnover?
Answer:___________________________________
4. Bisson Inc. has a profit margin of 12% and an investment turnover of 2.5. Sales
revenue is $600,000. What is the operating income?
Answer:___________________________________
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
15th edition
978-0133428858, 133428850, 133428702, 978-0133428704
