A)

Sales	$6,000,000
Net Operating Income	$800,000
Average Operating Assets	$10,000,000

Using the information above, calculate the following: - Profit Margin

- Asset Turnover

- ROI

B) Redmond Awnings, a division of Wrap-up Corp., has a net operating income of $60,000 and average operating assets of $300,000. The required rate of return for the company is 15%. What is the divisions residual income?

C) ABC Co. reported the following information for the quarter just ended:

Inspection time	2 hours
Wait time	8 hours
Process time	4 hours
Move time	1 hour
Queue time	3 hours

- Compute Delivery Cycle Time

- Compute Throughput Time

- Compute Manufacturing Cycle Efficiency

D) XYZ Co. has two divisions, A and B. Division A has an annual capacity of 2,000 units for producing part 3X34Y. Currently, Division A has an idle capacity of 200 units. The variable cost per unit for Division A is $4/unit and total fixed costs are $20,000. The selling price to the outside for part 3X34Y is $8/unit. Division B can use part 3X34Y to make another product for the company. Division B can purchase the part from the outside for $7/unit, and annual sales of Division Bs product is 500 units. Compute the range of possible transfer prices for part 3X34Y.