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%

Question

Quizplus · Accepted Answer

Return on sales is calculated as (Operating Income / Revenues) * 100. Operating Income = Revenues - Operating Costs = $2,400,000 - $1,300,000 = $1,100,000. Return on Sales = ($1,100,000 / $2,400,000) * 100 = 45.8%.