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Florida 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%. Return
Florida 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%. Return on investment is
a) 7.00%
b) $37,500
c) $15,000
d) 14.00%
Palm Inc. has a profit margin of 17% and an investment turnover of 2. Sales revenue is $801,000. What is the operating income?
a) $68,085
b) $272,340
c) $400,500
d) $136,170
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