ACCT 241 Week 11 Assignment Help 2 | American University

ACCT 241 Week 11 Assignment Help 2 | American University 


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

$

7,500,000

Net operating income

$

600,000

Average operating assets

$

5,000,000


 

Required:

1. Compute the margin for Alyeska Services Company.

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

3. Compute the return on investment (ROI) for Alyeska Services Company. (Do not round intermediate calculations.)

 

 

2.

the company had net operating income of $600,000 on sales of $3,000,000. The company’s average operating assets for the year were $2,800,000 and its minimum required rate of return was 18%.

 

Required:

Compute the company’s residual income for the year.

 

 

3.

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

0.3

days

Wait time (from order to start of production)

14.0

days

Process time

2.7

days

Move time

1.0

days

Queue time

5.0

days


 

Required:

1. Compute the throughput time.

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 answers to the nearest whole percent.)

4. Compute the delivery cycle time.

5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to 1 decimal place.)

 

 

4.

Provide the missing data in the following table for a distributor of martial arts products: (Round Bravo's Turnover to 1 decimal place.)

 

Division

Alpha

Bravo

Charlie

Sales

$4,000,000

$11,500,000

$3,000,000

Net operating income

$160,000

$920,000

$210,000

Average operating assets

$800,000

$4,600,000

$1,500,000

Margin

4

%

8

%

7

%

Turnover

5

2.5

2

Return on investment (ROI)

20

%

20

%

14

%

 

 

5.

Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:

 

 

Division

 

Osaka

Yokohama

Sales

$

3,000,000

$

9,000,000

Net operating income

$

210,000

$

720,000

Average operating assets

$

1,000,000

$

4,000,000


 

Required:

1. For each division, compute the return on investment (ROI) in terms of margin and turnover.

2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 15%. Compute the residual income for each division.

3. Is Yokohama’s greater amount of residual income an indication that it is better managed?

 

 

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