Question

1. Pinkton Corporation keeps careful track of the time required to fill orders. The times recorded for a particular order appear below:

	Hours
Move time	5.1
Wait time	30.3
Queue time	4.4
Process time	0.6
Inspection time	0.4

The delivery cycle time was: (Round your intermediate calculations to 1 decimal place.)

Multiple Choice

• 5.1 hours

• 9.5 hours

• 39.8 hours

• 40.8 hours

2. Navern Corporation manufactures and sells custom home elevators. From the time an order is placed until the time the elevator is installed in the customer’s home averages 118 days. This 118 days is spent as follows:

Wait time	24	days
Inspection time	19	days
Process time	29	days
Move time	27	days
Queue time	19	days

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

Multiple Choice

• 40.7%

• 30.9%

• 59.3%

• 56.8%

3. Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below:

Sales	$	17,560,000
Net operating income	$	1,071,160
Average operating assets	$	4,300,000

The division's turnover is closest to:

Multiple Choice

• 16.39

• 4.08

• 0.25

• 4.01

4. Agustin Industries is a division of a major corporation. Data concerning the most recent year appears below:

Sales	$	17,810,000
Net operating income	$	783,640
Average operating assets	$	4,640,000

The division's return on investment (ROI) is closest to:

Multiple Choice

• 4.40%

• 16.89%

• 13.04%

• 1.40%

Answer 1

1.)Throughput time =Process Time+Inspection Time+Move time+Queue Time

=0.6+0.4+5.1+4.4

=10.5

Delivery cycle time = wait time+throughput time

=30.3+10.5

=40.8 hours

2) Manufacturing cycle efficiency = [process time/total manufacturing cycle effeciency time ]*100

Process time = 29 days

Total manufacturing cycle effeciency time

=Inspection time+process time+move time+queue time

=19+29+27+19

=94 days

Manufacturing cycle efficiency =[29days/94 days]*100

=30.9%

3.turnover ratio = turnover /average operating assets

$17,560,000/$4,300,000

4.08

4.ROI = Net income/average assets

=$783,640/$4,640,000

=16.89%