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:

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) divided by the number of units produced.

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of a product.

Unit Product Cost

The total cost assigned to a single unit of product, including direct materials, direct labor, and allocated overhead.

Absorption Costing

An approach in financial accounting that wraps all expenses incurred in manufacturing including direct materials, direct labor, and all overhead (variable and fixed), into the product's cost.