Potter Products has produced an electric coffee pot to complement its range of kitchen products. The new coffee pot can be sold at a target price of $46, and annual target sales volume for the coffee pot is 250 000. Potter has target operating profit of 20% of sales. What are the target sales revenues?

a.$12 000 000

b.$1 200 000

c.$1 150 000

d.$11 500 000

Which of the following is not a value engineering method of reducing costs?

a.Redesigning alternative options over and over until the wishes of all cross-functional team members are accommodated

b.Simplifying the design and thereby decreasing the number of component parts

c.Building efficiencies into value-added costs

d.Reducing the number of features offered

Without ________________ quality measures, quality problems might not be identified until it is too late.

a.balanced

b.financial

c.non-financial

d.throughput

Inventory carrying costs are the __________________ costs of investment tied up in inventory.

a.prevention

b.opportunity

c.external failure

d.internal failure

The Echuca Electrical Corporation reported the following information for its Coaxial Cables Division:Revenues: $1 000 000; Operating costs: $600 000; Taxable income: $200 000; Operating assets: $500 000. Profit is defined as operating profit. What is the Coaxial Cables Division's investment turnover ratio?

Select one:

a.2.50

b.0.80

c.3.33

d.2.00