Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
38. Given the following data:
Average operating assets $250,000
Total liabilities $100,000
Sales $600,000
Contribution margin $150,000
Net operating income $30,000
Return on investment (ROI) would be:
39. CS Company has a profit margin of 11%. Sales are $320,000, net operating income is
$35,200, and average operating assets are $128,000. What is the company's return on investment
(ROI)?
40. Last year a company had sales of $400,000, a turnover of 2.4, and a return on investment
of 36%. The company's net operating income for the year was:
41. The following information relates to last year's operations at the Paper Division of
Germane Corporation:
Minimum required rate of return 15%
Return on investment (ROI) 18%
Sales $810,000
Turnover (on operating assets) 5 times
What was the Paper Division's net operating income last year?
42. For the past year, Allargando Company recorded sales of $500,000 and average operating
assets of $250,000. What is the margin that Allargando Company needed to earn in order to
achieve an ROI of 12%?
43. Chabot Company had the following results last year: net operating income, $2,160;
turnover, 5; and ROI 18%. Chabot Company's average operating assets were:
9-27
44. Given the following data:
Return on investment 25%
Turnover 2.5
Margin 10%
Sales $100,000
Average operating assets $40,000
Minimum required rate of return 18%
The residual income would be:
45. If operating income is $60,000, average operating assets are $240,000, and the minimum
required rate of return is 20%, what is the residual income?
46. The following information relates to last year's operations at the Bread Division of Rison
Bakery Inc.:
Residual income $12,000
Net operating income $60,000
Sales $300,000
Average operating assets $400,000
What was the Bread Division's minimum required rate of return last year?
47. Koogle Corporation uses residual income to evaluate the performance of its divisions.
The company's minimum required rate of return is 13%. In August, the Commercial Products
Division had average operating assets of $530,000 and net operating income of $76,700. What
was the Commercial Products Division's residual income in August?
48. In September, the Universal Solutions Division of Mcallister Corporation had average
operating assets of $120,000 and net operating income of $12,800. The company uses residual
income, with a minimum required rate of return of 12%, to evaluate the performance of its
divisions. What was the Universal Solutions Division's residual income in September?
49. Fruchter Corporation keeps careful track of the time required to fill orders. The times
recorded for a particular order appear below:
Hours
Move time 2.7
Wait time 26.4
Queue time 6.4
Process time 1.8
Inspection time 0.1
The throughput time was:
50. Mccubbin Corporation keeps careful track of the time required to fill orders. The times
recorded for a particular order appear below:
Hours
Move time 3.5
Wait time 11.9
Queue time 9.6
Process time 1.7
Inspection time 0.3
The delivery cycle time was:
51. Garde Corporation keeps careful track of the time required to fill orders. Data concerning
a particular order appear below:
Hours
Wait time 28.1
Process time 0.5
Inspection time 0.4
Move time 2.4
Queue time 4.8
The throughput time was:
52. Nash Corporation manufactures and sells custom snowmobiles. From the time an order is
placed till the time the snowmobile reaches the customer averages 50 days. This 50 days is spent
as follows:
Wait time 10 days
Move time 5 days
Process time 15 days
Queue time 15 days
Inspection time 5 days
What is Nash's manufacturing cycle efficiency (MCE) for its snowmobiles?
53. Emerich Corporation keeps careful track of the time required to fill orders. The times
recorded for a particular order appear below:
Hours
Move time 3.9
Wait time 23.8
Queue time 6.3
Process time 1.1
Inspection time 0.4
The manufacturing cycle efficiency (MCE) was closest to:
54. Brletich Corporation keeps careful track of the time required to fill orders. Data
concerning a particular order appear below:
Hours
Wait time 12.0
Process time 1.1
Inspection time 0.3
Move time 3.7
Queue time 5.4
The delivery cycle time was:
55. Ok Corporation keeps careful track of the time required to fill orders. Data concerning a
particular order appear below:
Hours
Wait time 24.6
Process time 0.8
Inspection time 0.1
Move time 3.1
Queue time 7.5
The manufacturing cycle efficiency (MCE) was closest to:
56. Aguilera Industries is a division of a major corporation. Data concerning the most recent
year appears below:
Sales $24,000,000
Net operating income $1,752,000
Average operating assets $6,000,000
The division's margin is closest to:
57. Aguilera Industries is a division of a major corporation. Data concerning the most recent
year appears below:
Sales $24,000,000
Net operating income $1,752,000
Average operating assets $6,000,000
The division's turnover is closest to:
