Firm a and Firm B Are in the Same Risk

Multiple Choice

Firm A and firm B are in the same risk class.Firm A has return on sales of 3% and an asset turnover of 4.Firm B generates 2 CU of profit per 100 CU of sales revenue and requires 25 CU of assets in order to support 100 CU of sales.In order for firm B to be seen as generating a better return on assets than firm A:

A) Firm A must increase its asset turnover to 6.67.
B) Firm A must increase its sales revenue to 110 CU.
C) Firm B must reduce the assets required to support its sales to 16.67 CU.
D) Firm B must increase its sales revenue to 110 CU.