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:

Chance Behavior

Unpredictable actions or events that occur without a definitive pattern, often analyzed in probability and statistics.

Computerized Model

A digital simulation or representation of a real-world process, system, or concept designed to study its behavior and make predictions.

Mathematical Modeling

The process of creating a mathematical representation of a real-world situation or system to analyze and predict its behavior.

Lead Time

In purchasing systems, the time between recognition of the need for an order and receiving it; in production systems, it is the order, wait, move, queue, setup, and run times for each component.