Solved

Sales and Average Operating Assets for Wyeth Company and Genesis

Question 92

Multiple Choice

Sales and average operating assets for Wyeth Company and Genesis Company are given below:
 Sales  Average Operating Assets  Wyeth Company $20,000$8,000 Genesis Company $50,000$10,000\begin{array} { | l | r | r | } \hline & \text { Sales } & \text { Average Operating Assets } \\\hline \text { Wyeth Company } & \$ 20,000 & \$ 8,000 \\\hline \text { Genesis Company } & \$ 50,000 & \$ 10,000 \\\hline\end{array} What is the margin that each company will have to earn in order to generate a return on investment of 20%?


A) 12% and 16%.
B) 50% and 100%.
C) 8% and 4%.
D) 2.5% and 5%.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions