Palm Inc. has a profit margin of 22% and an investment turnover of 5. Sales revenue is $809,000. What is the operating income?

Multiple Choice

A)$177,980

B)$35,596

C)$889,900

D)$161,800

Avocado Company has an operating income of $107,000 on revenues of $1,090,000. Average invested assets are $504,000 and Avocado Company has an 8% cost of capital. What is the residual income?

Multiple Choice

A)$107,000

B)$19,800

C)$66,680

D)$126,800

Dade Corp. has residual income of $12,280. If operating income equals $33,000 and the minimum required rate of return is 8%, what are average invested assets?

Multiple Choice

A)$518,000

B)$259,000

C)$388,500

D)$129,500