Please answer the following questions:
Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales $ 17,300,000 Net operating income 5 5,300,000 Average operating assets $ 35,700,000 ' Required: 1. Compute the margin. (Round your answer to 2 decimal places.) 2. Compute the turnover. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI). (Round your intermediate calculations and nal answer to 2 decimal places.) Juniper Design Ltd. of Manchester, England, provides design services to residential developers. Last year, the company had net operating income of $420,000 on sales of $2,000,000. The company's average operating assets for the year were $2,200,000 and its minimum required rate of return was 13%. Required: Compute the company's residual income for the year. _:| Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division New South Queensland Wales Sales 5 1,071,000 $ 2,016,000 Average operating assets $ 510 , 000 $ 560 , 000 Net operating income $ 107,100 $ 141,120 Property, plant, and equipment (net) 5 251 ,000 $ 201 , 000 Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the betterjob? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Round your answers to 2 decimal places.) New South Wales division Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below: Division New South Queensland Wales Sales $ 1,071,000 $ 2,016,000 Average Operating assets $ 510,000 $ 560,000 Net operating income $ 107 , 100 $ 141 , 120 Property, plant, and equipment (net) 5 251 , 000 S 201, 000 ' Required: 1. Compute each division's margin, turnover, and return on investment (ROI). 2. Which divisional manager seems to be doing the betterjob? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Which divisional manager seems to be doing the better job? OQueensland division ONew South Wales division A 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.) Company A B C Sales $ 330,000 $ 670,000 $ 500,000 Net operating income $ 41,000 Average operating assets $ 167,000 $ 152,000 Return on investment (ROI) 21 % 16% % Minimum required rate of return: Percentage 15 % % 11 % Dollar amount $ 59,000 Residual income $ 7,000Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Golf Fishing Guard Guard Guard Selling price per unit $ 310 $ 390 $ 215 variable cost per unit $ 70 $ 160 $ 95 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 14 pounds 7 pounds 15 pounds ' 11 minutes 11 minutes 2 minutes Required: 1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? (Round your nal answers to 2 decimal places.) Contribution margin per minute of the constrained resource per minute per minute per minute Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Golf Fishing Guard Guard Guard Selling price per unit $ 310 $ 390 $ 215 Variable cost per unit $ 70 $ 160 $ 95 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 14 pounds 7 pounds 15 pounds 11 minutes 11 minutes 2 minutes Required: 1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Which product offers the most profitable use of the plastic injection molding machine? OFishing Guard OSki Guard OGolf Guard Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Golf Fishing Guard Guard Guard Selling price per unit 5 310 S 390 S 215 Variable cost per unit $ 70 $ 160 $ 95 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 14 pounds 7 pounds 15 pounds 11 minutes 11 minutes 2 minutes Required: 1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? (Round your final answers to 2 decimal places.) Contribution margin per pound of the constrained resource ----- Outdoor Luggage, Inc., makes high-end hard-sided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Golf Fishing Guard Guard Guard Selling price per unit $ 310 $ 390 $ 215 Variable cost per unit $ 70 $ 160 $ 95 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 14 pounds 7 pounds 15 pounds 11 minutes 11 minutes 2 minutes Required: 1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, hov much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If we assume that a severe shortage of plastic pellets has required the company to cutback its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? 4. Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Which product offers the most profitable use of the plastic pellets? OFishing Guard OGolf Guard OSki Guard Outdoor Luggage, Inc., makes highend hardsided luggage for sports equipment. Data concerning three of the company's most popular models appear below. Ski Golf Fishing Guard Guard Guard Selling price per unit $ 310 $ 390 $ 215 Variable cost: per unit 5 70 $ 160 $ 95 Plastic injection molding machine processing time required to produce one unit Pounds of plastic pellets per unit 14 pounds 7 pounds 15 pounds 11 minutes 11 minutes 2 minutes Required: 1. If we assume that the total time available on the plastic injection molding machine is the constraint in the production process, how much contribution margin per minute of the constrained resource is earned by each product? 2. Which product offers the most profitable use of the plastic injection molding machine? 3. If we assume that a severe shortage of plastic pellets has required the company to cut back its production so much that its new constraint has become the total available pounds of plastic pellets, how much contribution margin per pound of the constrained resource is earned by each product? 4' Which product offers the most profitable use of the plastic pellets? 5. Which product has the largest contribution margin per unit? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Which product has the largest contribution margin per unit? OFishing Guard OGolf Guard OSki Guard Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below: Recliner Sofa Love Seat Selling price per unit $ 1,176 $ 1,700 $ 1,300 Variable cost per unit $ 700 $ 1,150 $ 900 Upholstery labor-hours per unit 7 hours 10 hours 5 hours Required: 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? 2' A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $49 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly as Portsmouth's own craftsmen on the simpler upholsteringjobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below: Recliner Sofa Love Seat Selling price per unit $ 1,176 $ 1,700 $ 1,300 Variable cost per unit 3 700 $ 1,150 $ 900 Upholstery labor-hours per unit 7 hours 10 hours 5 hours Required: 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $49 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly as Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $49 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly as Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if it hires the nearby upholstering company to make Love Seats? Show IessA Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below: Recliner Sofa Love Seat Selling price per unit $ 1,176 $ 1,700 $ 1,300 Variable cost per unit $ 700 $ 1,150 $ 900 Upholstery labor-hours per unit 7 hours 10 hours 5 hours Required: 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $49 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly as Portsmouth's own craftsmen on the simpler upholsteringjobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales 3 17,400,000 Net operating income $ 5,200,000 Average operating assets $ 36,700,000 I Required: 1. Compute the margin. (Round your answer to 2 decimal places.) 2. Compute the turnover. (Round your answer to 2 decimal places.) 3. Compute the return on investment (ROI). (Round your intermediate calculations and nal answer to 2 decimal places.) 1. Margin 2. Turnover 3. ROI Juniper Design Ltd. of Manchester, England, provides design services to residential developers. Last year, the company had net operating income of $490,000 on sales of $1,300,000. The company's average operating assets for the year were $1,500,000 and its minimum required rate of return was 15%. Required: Compute the company's residual income for the year. _:| Management of Mittel Company would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the rst quarter of operations during the current year the following data were reported: Inspection time 0.6 days Wait time (from order to start of production) 16.0 days Process time 2 . 9 days Move time 1 . 1 days Queue time 3.7 days Required: 1. Compute the throughput time. (Round your answer to 1 decimal place.) 2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.) 3. What percentage of the 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 MCE? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place.) n-- _-n Non-value-added throughput time -_ I F- Jefferson Company's demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. Actual run time this week 6, 723 minutes Machine time available per week 8, 100 minutes Actual run rate this week 1. 52 units per minute Ideal run rate 2.00 units per minute Defect-free output this week 12 , 496 units Total output this week (including defects) 17 , 600 units Required: 1. Compute the utilization rate. (Round your answer to 2 decimal places.) 2. Compute the efficiency rate. (Round your answer to 2 decimal places.) 3. Compute the quality rate. (Round your answer to 2 decimal places.) 4. Compute the overall equipment effectiveness (OEE). (Do not round intermediate calculations. Round your final answer to 3 decimal places.) Utilization rate Efficiency rate Quality rate Overall equipment effectiveness
