1. The Alpha Company had sales of $2,000,000, net operating income of $320,000 and average operating assets of $575,000. What was the return on investment? Round your percentage answer to the nearest whole percent.

Answer:____________

2. ABC Industries is evaluating the amount of time between when a customer places an order and when the order is shipped. For last year, the following data was reported:

Inspection time 0.3 days

Wait time 7.0 days

Process time 2.6 days

Move time 0.8 days

Queue time 3.4 days

What is the delivery cycle time in days? Enter the value with 1 decimal place.

Answer:__________

3. Which of the following activities adds value to the product?
   1. Queue time
   2. Process time
   3. Move time
   4. Inspection time

4. When a company has a manufacturing cycle efficiency ratio of 50%, that means that:
   1. Wait time is equal to 50% of the throughput time
   2. Inspection time is equal to 50% of the throughput time
   3. Process time is equal to 50% of the throughput time
   4. Queue time is equal to 50% of the throughput time

5. The net operating income that an investment center earns above the minimum required return on its average operating assets is:
   1. Net income
   2. Return on investment
   3. Residual income
   4. Gross margin

6. ABC Company had sales of $400,000, net operating income was $112,000, and average operating assets were $520,000. What is the companys return on investment rounded to 2 decimals?
   1. 28.00%
   2. 21.54%
   3. 76.92%
   4. 21.92%

7. A company is deciding if they should add a new product line that would increase sales by $1,200,000, variable expenses are 45% of sales, and fixed costs are $500,000. The new product line would require an investment that would increase average operating assets by $200,000. What is the companys return on investment for this new product line?
   1. 32%
   2. 30%
   3. 80%
   4. 75%