Sales and average operating assets for Wyeth Company and Genesis Company are given below:
$$\begin{array} { | l | r | r | }
\hline & \text { Sales } & \text { Average Operating Assets } \
\hline \text { Wyeth Company } & \$ 20,000 & \$ 8,000 \
\hline \text { Genesis Company } & \$ 50,000 & \$ 10,000 \
\hline
\end{array}$$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%.

Question

Sales and average operating assets for Wyeth Company and Genesis Company are given below: 
$$\begin{array} { | l | r | r | } 
\hline & \text { Sales } & \text { Average Operating Assets } \
\hline \text { Wyeth Company } & \$ 20,000 & \$ 8,000 \
\hline \text { Genesis Company } & \$ 50,000 & \$ 10,000 \
\hline
\end{array}$$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%.

Quizplus · Accepted Answer

The Answer of Sales and average operating assets for Wyeth Company and Genesis Company are given below: 
$$\begin{array} { | l | r | r | } 
\hline & \text { Sales } & \text { Average Operating Assets } \
\hline \text { Wyeth Company } & \$ 20,000 & \$ 8,000 \
\hline \text { Genesis Company } & \$ 50,000 & \$ 10,000 \
\hline
\end{array}$$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%.

Sales and Average Operating Assets for Wyeth Company and Genesis