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1. Baad Industries is a division of a major corporation. Last year the division

ID: 2468049 • Letter: 1

Question

1. Baad Industries is a division of a major corporation. Last year the division had total sales of $20,440,000, net operating income of $1,860,040, and average operating assets of $7,000,000.

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

21.0%

26.6%

6.8%

2.5%

2. Ebsen Corporation keeps careful track of the time required to fill orders. Data concerning a particular order appear below:

The throughput time was:

30.5 hours

4.5 hours

13.9 hours

26 hours

Hours Wait time 16.6 Process time 1.3 Inspection time 0.3 Move time 2.9 Queue time 9.4

Explanation / Answer

1)   26.6% Statement showing computations Particulars Amount Sales        20,440,000.00 Net operating Income          1,860,040.00 Average Operating Assets          7,000,000.00 Return on Investment = NOI/Avg op Assets 26.57% OR Turnover = Sales/Avg operating Assets                           2.92 Margin In % = NOI/Sales 9.10% ROI 26.57% 2) 13.9 hours Statement showing computations Particulars Amount Process time in hours                           1.30 Inspection time in hours                           0.30 Move time in hours                           2.90 Queue time in hours                           9.40 Throughput time                         13.90 Throughput time = Process time + Inspection time + Move time + Queue time