Use the Table for the Question(s)below

question 63

Multiple Choice

Use the table for the question(s) below.
Consider the following income statement and other information:
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $ millions)
-Wyatt Oil has a net profit margin of 4.0%,a total asset turnover of 2.2,total assets of $525 million,and a book value of equity of $220 million.Wyatt Oil's current return-on-assets (ROA) is closest to:

• A)8.8%.
• B)9.5%.
• C)21.0%.
• D)22.8%.

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Definitions:

Perfect Competition

A market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, making firms price takers.

Average Total Cost

The total cost of production divided by the quantity produced, indicating the average cost of producing each unit of output.

Profit Maximization

The process by which a firm determines the price and output level that returns the greatest profit, considering costs and market demand.

Short-Run Supply Curve

A graphical representation showing the relationship between the market price of a good and the quantity supplied by producers in the short term.