The Electronics Division of Anton Company Reports the Following Results

question 33

Multiple Choice

The Electronics Division of Anton Company reports the following results for the current year: Anton Company has set a target return on investment (ROI) of 11% for the Electronics Division. The Electronic Division's margin is:
$$\begin{array} { | l | l r | } \hline \text { Revenues } & \$ & 800,000 \\\hline \text { Operating expenses } & \$ & 720,000 \\\hline \text { Operating income } & \$ & 144,000 \\\hline \text { Operating assets } & \$ & 1,200,000 \\\hline\end{array}$$

• A)11.25%.
• B)12%.
• C)66.7%.
• D)18%.

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Definitions:

Non-value-added Time

Time spent in the production process that does not contribute to the end product's value or quality, often targeted for reduction in lean manufacturing practices.

Throughput Time

The amount of time it takes for a product to pass through a production process, from start to finish, including processing, inspection, and transit times.

Desirable

Something that is wanted or wished for because it is considered attractive, satisfying, or beneficial.

Operating Asset

Assets used in the day-to-day operations of a business to generate revenue, such as machinery, buildings, and equipment.