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

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Accounting

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. (10 marks)

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