Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my work :1! family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Check my work :1! family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: [Loss amounts should be indicated by a minus sign. Round your percentage answers to nearest whole percent and other amounts to whole dollars.) Sales $ 420,000 $ 750,000 $ 580,000 Netoperatingincome I :5 3T,000 Averageoperatingassets $ 158,000 $ 14?,000 Return on investment (ROI) 15 Minimum requiredrate of return: Percentage Dollarameunt Residual income \fSelected sales and operating data for three divisions ofdifferent structural engineering firms are given as follows: Division A Division B Division C 42 Sales $ 5,499,999 9 9,499,999 5 9,599,999 30m: Average operating assets $ 1,686,666 S 4,?66,666 $ 1,?66,666 ' Net operating income $ 243,666 5 TQQ,666 5 148,?56 Minimum required rate of return 14.66% 1?.6636 11.6636 . Required: 1. Compute the return on investment {ROI} for each division using the formula stated in terms of margin and turnover. El 2. Compute the residual income {loss} for each division. Qmk 3. Assume that each division is presented with an investment opportunitythat would yield a 15% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? EF b. If performance is being measured by residual income, which division or divisions will probably accept or rejectthe opportunity? Print E Complete this question by entering your answers in the tabs below. References Red 1 Red 2 Reg 3A Red 33 Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 0mm _El__ we _sl__ Req2 > points [XI] Management of Mittel Rhein AG of Koln, Germany, would like to reduce the amount oftime between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: Inspection time B 5 days Wait time (from order to start of production) 15.5 days Pr'ocess time 2.9 days Hove time B 5 days Queue time 3 8 days Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MICE) for the quarter. {Rou ncl your percentage answer to nearest whole percent.) 3. What percentage ofthe throughput time was spent in nonvalueadded activities? [Round your percentage answer to nearest whole percent.) 4. Compute the delivery cycle time. {Round your intermediate calculations and final answer to 1 decimal place.) 5. If by using Lean Production all queue time during production is eliminated, what will be the new NICE? (Round your percentage answer to 1 decimal place.) a Answer is not complete. Throughputtime Manufacturing cycle efciency :- Non-yalue- -addedthroughput -:- time 5 New manufacturing cycle ' efciency

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Regression Analysis And Other Multivariable Methods

Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg

5th Edition

1285051084, 978-1285963754, 128596375X, 978-1285051086

Students also viewed these Accounting questions