Chace Products is a division of a major corporation. Last year the division had total sales of $21,300,000, net operating income of $575,100, and average operating assets of $5,000,000. The company's minimum required rate of return is 12%.
-The manufacturing cycle efficiency (MCE)was closest to:
A)0.15
B)0.05
C)0.45
D)0.18

Question

Quizplus · Accepted Answer

Throughput time = Process time + Inspection time + Move time + Queue time
= 1.4 hours + 0.1 hours + 2.7 hours + 5.3 hours = 9.5 hours
MCE = Value-added time (Process time)F1F1F1S1F1F1F10 Throughput (manufacturing cycle)time
= 1.4 hours F1F1F1S1F1F1F10 9.5 hours = 0.15

Chace Products Is a Division of a Major Corporation