1.The tool crib at a large manufacturing company is responsible for providing tools to the factory workers on demand. The tool crib has a variable demand. Historically, its demand has ranged from 150 to 250 small tools per day with an average of 200. Diane, the tool crib attendant, works eight hours a day, five days a week. Each order is for one small tool and each small tool takes Diane 2 minutes to retrieve from the bins. What is the average waiting time, in minutes?

Select one:

a.5

b.3

c.7

d.2

2.When demand uncertainty is ________ , some unused capacity is desirable.

a.low

b.average

c.non-existent

d.high

3.Managers need to evaluate the success of a strategy by:

a.evaluating budget-to-actual variances.

b.doing a cost-benefit analysis.

c.linking the sources of operating-profit increases to the strategy.

d.evaluating the level of bonus compensation.

4.Wacker Company has two regional offices. The data for each follows: Adelaide- Revenues: $580 000, operating assets: $4 800 000, Net operating profit: 2 016 000. Perth- Revenues: $596 000, operating assets: 9 000 000, Net operating profit: 2 400 000. What is the Adelaide Division's return on investment?

a.0.54

b.0.96

c.4.12

d.0.42