Answer the Following Questions Using the Information Below:
the Cybertronics

question 104

Multiple Choice

Answer the following questions using the information below:
The Cybertronics Corporation reported the following information for its Cyclotron Division:
$$\begin{array} { l r } \text { Revenues } & \$ 2,000,000 \\\text { Operating costs } & 1,200,000 \\\text { Operating assets } & 1,000,000\end{array}$$ Income is defined as operating income.
-What is the Cyclotron Division's return on sales?

• A) 20%
• B) 40%
• C) 50%
• D) 60%

---

Definitions:

Activity-Based Costing

An approach in cost calculation that pinpoints various activities in a company and apportions the expenses of these activities to products and services, reflective of their actual utilization levels.

Direct Labor-Hours

The total hours of labor directly involved in the manufacturing process, crucial for calculating labor costs and production efficiency.

Direct Materials Cost

The cost of raw materials that can be directly attributed to the production of goods.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific products or projects based on their consumption of resources.