The Cybertronics Corporation Reported the Following Information for Its Cyclotron $\begin{array}{ll}\text { Revenues } & \$ 2,400,000 \\\text { Operating costs } & 1,300,000 \\\text { Operating assets } & 1,200,000\end{array}$

question 7

Multiple Choice

The Cybertronics Corporation reported the following information for its Cyclotron Division:
$\begin{array}{ll}\text { Revenues } & \$ 2,400,000 \\\text { Operating costs } & 1,300,000 \\\text { Operating assets } & 1,200,000\end{array}$
Income is defined as operating income.
What is the Cyclotron Division's return on sales?

• A)91.7%
• B)45.8%
• C)50.0%
• D)92.3%

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Definitions:

Cash Disbursements

Outflows of cash for expenses, including payments to suppliers, employees, and other creditors.

Manufacturing Overhead Budget

A detailed plan showing the production costs, other than direct materials and direct labor, that will be incurred over a specified time period.

Variable Selling

Refers to costs that vary directly with the level of sales, such as commissions and shipping charges.

Administrative Expense Budget

A projection of the costs associated with the general administration and management of a business.