42*. Alma Inc. has revenues of $750,000 resulting in an operating income of $52,500. Average invested assets total $375,000; the cost of capital is 10%. The profit margin is A. 2.00 B. 0.50 C. 14% D. 7%

43*. 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 residual income? A. $ 60,000 B. $ 20,000 C. $120,000 D. $100,000

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