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75. The manufacturing cycle efficiency (MCE) was closest to:
Hart Manufacturing operates an automated steel fabrication process. For one operation,
Hart has found that 45% of the total throughput (manufacturing cycle) time is spent on non-
value-added activities. Delivery cycle time is 12 hours, waiting time during the production process
is 3 hours, queue time prior to starting the production process is 2 hours, and inspection time is
1.2 hours.
76. The manufacturing cycle efficiency (MCE) for this operation is:
77. What is the move time recorded for the operation?
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78. What is the throughput (manufacturing cycle) time for the operation?
Saffer Corporation keeps careful track of the time required to fill orders. Data concerning a
particular order appear below:
79. The throughput time was:
80. The manufacturing cycle efficiency (MCE) was closest to:
81. The delivery cycle time was:
82. Heavey Fabrication is a division of a major corporation. Last year the division had total
sales of $21,120,000, net operating income of $2,006,400, and average operating assets of
$6,000,000. The company's minimum required rate of return is 12%.
Required:
What is the division's return on investment (ROI)?
12-64
83. Gilde Industries is a division of a major corporation. Last year the division had total sales
of $23,380,000, net operating income of $2,828,980, and average operating assets of $7,000,000.
The company's minimum required rate of return is 12%.
Required:
a. What is the division's margin?
b. What is the division's turnover?
c. What is the division's return on investment (ROI)?
84. Ferris Wares is a division of a major corporation. The following data are for the latest year
of operations:
Required:
a. What is the division's return on investment (ROI)?
b. What is the division's residual income?
12-65
85. Financial data for Windsor, Inc. for last year appear below:
The company paid dividends of $104,000 last year. The "Investment in Pine Company" on the
statement of financial position represents an investment in the stock of another company.
Required:
a. Compute the company's margin, turnover, and return on investment for last year.
b. The Board of Directors of Windsor, Inc. has set a minimum required return of 25%. What was
the company's residual income last year?
86. Eckels Wares is a division of a major corporation. The following data are for the latest
year of operations:
Required:
a. What is the division's margin?
b. What is the division's turnover?
c. What is the division's return on investment (ROI)?
d. What is the division's residual income?
87. Iles Industries is a division of a major corporation. The following data are for the latest
year of operations:
Required:
What is the division's residual income?
88. The Casket Division of Rosencranz Corporation had average operating assets of $150,000
and net operating income of $27,800 in March. The company uses residual income to evaluate
the performance of its divisions, with a minimum required rate of return of 17%.
Required:
What was the Casket Division's residual income in March?
89. Madrazo Corporation uses residual income to evaluate the performance of its divisions.
The minimum required rate of return for performance evaluation purposes is 19%. The Games
Division had average operating assets of $410,000 and net operating income of $86,000 in June.
Required:
What was the Games Division's residual income in June?
12-70
90. Jaster Corporation's management keeps track of the time it takes to process orders.
During the most recent month, the following average times were recorded per order:
Required:
a. Compute the throughput time.
b. Compute the manufacturing cycle efficiency (MCE).
c. What percentage of the production time is spent in non-value-added activities?
d. Compute the delivery cycle time.
91. During the most recent month at Coggan Corporation, queue time was 5.3 days,
inspection time was 0.5 day, process time was 1.9 days, wait time was 4.5 days, and move time
was 0.5 day.
Required:
a. Compute the throughput time.
b. Compute the manufacturing cycle efficiency (MCE).
c. What percentage of the production time is spent in non-value-added activities?
d. Compute the delivery cycle time.
92. Durkee Corporation keeps careful track of the time required to fill orders. The times
required for a particular order appear below:
Required:
a. Determine the throughput time. Show your work!
b. Determine the manufacturing cycle efficiency (MCE), Show your work!
c. Determine the delivery cycle time. Show your work!
93. Waltner Corporation's management reports that its average delivery cycle time is 20.0
days, its average throughput time is 7.5 days, its manufacturing cycle efficiency (MCE) is 0.32, its
average move time is 0.2 day, and its average queue time is 4.0 days.
Required:
a. What is the wait time?
b. What is the process time?
c. What is the inspection time?
