1. Florida Inc. has revenues of $750,000 resulting in an operating income of $67,500. Average invested assets total $375,000; the cost of capital is 19%. The profit margin is
a) 9.00%
b) 2.00
c) 18.00%
d) 0.50
2. Avocado Company has an operating income of $118,360 on revenues of $1,001,000. Average invested assets are $538,000, and Avocado Company has an 8% cost of capital.
What is the return on investment?
a) 8%
b) 22%
c) 12%
d) 14%