question archive The Cybertronics Corporation reported the following information for its Cyclotron Division: Revenues reported as $2,000,000 Operating costs reported as $1,200,000 Taxable income reported as $400,000 Operating assets reported as $1,000,000 Income is defined as operating income
The Cybertronics Corporation reported the following information for its Cyclotron Division: Revenues reported as $2,000,000 Operating costs reported as $1,200,000 Taxable income reported as $400,000 Operating assets reported as $1,000,000 Income is defined as operating income
Subject:AccountingPrice:2.86 Bought3
The Cybertronics Corporation reported the following information for its Cyclotron Division:
Revenues reported as $2,000,000
Operating costs reported as $1,200,000
Taxable income reported as $400,000
Operating assets reported as $1,000,000
Income is defined as operating income. What is the Cyclotron Division's return on sales?
A.0.20
B.0.40
C.0.50
D.0.60
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
B.0.40
Step-by-step explanation
FORMULAS:
Return on Sales = Operating Profit* ÷ Revenues
*Operating Profit = Revenues - Operating Costs
Step 1: Calculate the Operating Profit
Operating Profit = 2,000,000 - 1,200,000
Operating Profit = 800,000
Step 2: Calculate the Return on Sales
Return on Sales = 800,000 ÷ 2,000,000
Return on Sales = 0.4
