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. TVPCSales$20,000(d)Average operating assets$20,000(e)Net operating income(a)$20,000Residual Income$3,000(f)Margin(b)5%Turnover(c)5Return on Investment (ROI)20%(g)Company ABC tracks the time of processing orders. The average times were recorded as follows:Queue Time4 hoursInspection Time1 hourProcess Time(h)Move Time3 hoursWait Time5 hoursManufacturing Cycle Efficiency0.5Delivery Cycle Time(i)Value-added Time(j) Compute the unknown quantities above [(a) through (j)]. SHOW YOUR COMPUTATIONS

Cash Flow is a part of the Financial Statement of a company. It literally means a statement which…

Answered: Company ABC has a TV division, and a PC…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 13E: The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as...

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

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

Queue Time	4 hours
Inspection Time	1 hour
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

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