Company ABC has a TV division and a PC division. The following information relates to last...

Company ABC has a TV division and a PC division. The following information relates to last year's operations at each division. The minimum required rate of return is the same for both divisions.

	TV	PC
Sales	$10,000	(d)
Average operating assets	$20,000	(e)
Net operating income	(a)	$10,000
Residual Income	$3,000	(f)
Margin	(b)	5%
Turnover	(c)	2
Return on Investment (ROI)	20%	(g)

Company ABC tracks the time of processing orders. The average times were recorded as follows:

Queue Time	3 hours
Inspection Time	2 hours
Process Time	(h)
Move Time	3 hours
Wait Time	5 hours
Manufacturing Cycle Efficiency	0.5
Delivery Cycle Time	(i)
Value-added Time	(j)

Compute the unknown quantities above [(a) through (j)]. SHOW YOUR COMPUTATIONS.

Expert Solution

Answer to a, b, c and d:

Answer to e & f:

Answer to g:

ekkarill92 answered 2 years ago

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