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95. Ebsen Corporation keeps careful track of the time required to fill orders. Data concerning
a particular order appear below:
Hours
Wait time 16.6
Process time 1.3
Inspection time 0.3
Move time 2.9
Queue time 9.4
The manufacturing cycle efficiency (MCE) was closest to:
96. Ebsen Corporation keeps careful track of the time required to fill orders. Data concerning
a particular order appear below:
Hours
Wait time 16.6
Process time 1.3
Inspection time 0.3
Move time 2.9
Queue time 9.4
The delivery cycle time was:
97. The following data pertain to operations at Quick Incorporated:
Throughput time 4 hours
Delivery cycle time 8 hours
Process time 1 hour
Queue time 2 hours
The wait time for this operation would be:
98. The following data pertain to operations at Quick Incorporated:
Throughput time 4 hours
Delivery cycle time 8 hours
Process time 1 hour
Queue time 2 hours
The combined inspection and move time for this operation would be:
99. The following data pertain to operations at Quick Incorporated:
Throughput time 4 hours
Delivery cycle time 8 hours
Process time 1 hour
Queue time 2 hours
The manufacturing cycle efficiency (MCE) for this operation would be:
100. Jolin Corporation keeps careful track of the time required to fill orders. The times
recorded for a particular order appear below:
Hours
Move time 2.0
Wait time 26.1
Queue time 9.0
Process time 1.2
Inspection time 0.2
The delivery cycle time was:
101. Jolin Corporation keeps careful track of the time required to fill orders. The times
recorded for a particular order appear below:
Hours
Move time 2.0
Wait time 26.1
Queue time 9.0
Process time 1.2
Inspection time 0.2
The throughput time was:
102. Jolin Corporation keeps careful track of the time required to fill orders. The times
recorded for a particular order appear below:
Hours
Move time 2.0
Wait time 26.1
Queue time 9.0
Process time 1.2
Inspection time 0.2
The manufacturing cycle efficiency (MCE) was closest to:
103. Handle Fabrication is a division of a major corporation. Last year the division had total
sales of $36,160,000, net operating income of $2,892,800, and average operating assets of
$8,000,000. The company's minimum required rate of return is 12%.
Required:
What is the division's return on investment (ROI)?
104. Gaal Industries is a division of a major corporation. Last year the division had total sales
of $26,110,000, net operating income of $1,801,590, and average operating assets of $7,000,000.
The company's minimum required rate of return is 18%.
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)?
9-91
105. Financial data for Redstone Company for last year appear below:
Redstone Company
Statements of Financial Position
Beginning
Balance Ending
Balance
Assets:
Cash $120,000 $160,000
Accounts receivable 110,000 100,000
Inventory 50,000 60,000
Plant and equipment (net) 180,000 160,000
Investment in Balsam Company 50,000 60,000
Land (undeveloped) 120,000 120,000
Total assets $630,000 $660,000
Liabilities and owners' equity:
Accounts payable $70,000 $90,000
Long-term debt 500,000 500,000
Owners' equity 60,000 70,000
Total liabilities and owners' equity $630,000 $660,000
Redstone Company
Income Statement
Sales $1,222,000
Less operating expenses 1,099,800
Net operating income 122,200
Less interest and taxes:
Interest expense $60,000
Tax expense 20,000 80,000
Net income $42,200
9-92
The company paid dividends of $32,200 last year. The "Investment in Balsam 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 Redstone has set a minimum required return of 25%. What was the
company's residual income last year?
