Question: Part IV - Problems -Performance Evaluation - 2.5 points each. Total = 15 points. 1. Bloomer Company has an operating income of $40,000 on revenues

 Part IV - Problems -Performance Evaluation - 2.5 points each. Total

Part IV - Problems -Performance Evaluation - 2.5 points each. Total = 15 points. 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: 5.Bloomer Company has an operating income of $68,000 on revenues of $1,000,000. Average invested assets are $600,000 and Bloomer Company has an 8% cost of capital. What is the residual income? Answer: 6.Barron Corp. has a residual income of $21,000 on invested assets of $450,000. If the cost of capital is 12%, what is the operating income

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