Question

1.

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:

Sales	$	18,900,000
Net operating income	$	5,400,000
Average operating assets	$	36,600,000

Required:

1. Compute the margin for Alyeska Services Company. (Round your answer to 2 decimal places.)

2. Compute the turnover for Alyeska Services Company. (Round your answer to 2 decimal places.)

3. Compute the return on investment (ROI) for Alyeska Services Company. (Round your intermediate calculations and final answer to 2 decimal places.)

2. Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year, the company had net operating income of $490,000 on sales of $1,800,000. The company’s average operating assets for the year were $2,000,000 and its minimum required rate of return was 13%.

Required:

Compute the company’s residual income for the year.

3.

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:

	Division
	Queensland		New South Wales
Sales	$	1,800,000	$	2,499,000
Average operating assets	$	600,000	$	510,000
Net operating income	$	180,000	$	174,930
Property, plant, and equipment (net)	$	260,000	$	210,000

Required:

1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover.

2. Which divisional manager seems to be doing the better job?

4.

Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported:

Inspection time	0.5	days
Wait time (from order to start of production)	16.9	days
Process time	3.5	days
Move time	1.5	days
Queue time	4.3	days

Required:

1. Compute the throughput time. (Round your answer to 1 decimal place.)

2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your percentage answer to nearest whole percent.)

3. What percentage of the throughput time was spent in non–value-added activities? (Round your percentage answer to nearest whole percent.)

4. Compute the delivery cycle time. (Round your intermediate calculations and final answer to 1 decimal place.)

5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Do not round intermediate calculations. Round your percentage answer to 1 decimal place.)

Answer 1

Question 1
1) Margin for Alyeska Services Company
Margin = (Net Operating Income / Sales) * 100
Margin = (5,400,000/18,900,000) * 100 = 0.29 or 28.57 %
2) turnover for Alyeska Services Company
Turnover = (Sales / Average operating Assets) * 100
Turnover = (18,900,000 / 36,600,000) * 100 = 0.52 or 51.64%
3) return on investment (ROI) for Alyeska Services Company
ROI = (Ner operating income / Average operating Assets) * 100
ROI = (5,400,000/ 36,600,000) * 100 = 0.15 or 14.75%
Since all the questions are different I had provided the answer of first question.
Please post other questions separately.