Sales and Average Operating Assets for Wyeth Company and Genesis

question 22

Multiple Choice

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


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%.

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Definitions:

Petroleum

A naturally occurring liquid found beneath the Earth's surface that can be refined into fuel and various chemical products.

Commercial Energy

Energy that is produced and sold commercially, often in the form of electricity, natural gas, oil, and coal.

United States

A country in North America composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Biomass Energy

Biomass energy involves producing energy by burning organic materials, such as wood, agricultural crops, and waste materials, in a process that can be more sustainable than fossil fuels.