Schurz Corporation's management reports that its average delivery cycle time is 36 days, its average throughput time is 14.0 days, its manufacturing cycle efficiency (MCE) is 0.50, its average move time is 0.6 day, and its average queue time is 2.2 days.

Required:

a. What is the wait time? (Round your answer to 1 decimal place.)

b. What is the process time? (Round your answer to 1 decimal place.)

c. What is the inspection time? (Round your intermediate calculations and final answer to 1 decimal place.)

Parsa Inc. reported the following results from last years operations:

Sales	$	14,000,000
Variable expenses		9,500,000
Contribution margin		4,500,000
Fixed expenses		3,800,000
Net operating income	$	700,000
Average operating assets	$	7,000,000

At the beginning of this year, the company has a $1,100,000 investment opportunity with the following characteristics:

Sales	$	1,980,000
Contribution margin ratio		40	% of sales
Fixed expenses	$	653,400

If the company pursues the investment opportunity and otherwise performs the same as last year, the combined ROI for the entire company will be closest to:

Multiple Choice

• 10.4%

• 8.6%

• 1.7%

• 12.0%

Navern Corporation manufactures and sells custom home elevators. From the time an order is placed until the time the elevator is installed in the customers home averages 59 days. This 59 days is spent as follows:

Wait time	12	days
Inspection time	7	days
Process time	17	days
Move time	16	days
Queue time	7	days

What is Navern's manufacturing cycle efficiency (MCE) for its elevators?

Multiple Choice

• 40.7%

• 59.3%

• 52.5%

• 36.2%

The management of International Cookwares believes that delivery performance measures must be improved if the company is to maintain its competitive edge. The following data are considered to be typical of the time to complete orders.

• Process time: 4 days
• Wait time to the start of production: 15 days
• Move time: 3 days
• Inspection time: 2 days
• Queue time during the production process: 8 days

What is the manufacturing cycle efficiency?

Multiple Choice

• 76.4%

• 12.5%

• 87.5%

• 23.5%