Travis Corporation Keeps Careful Track of the Time Required to Fill

question 78

Multiple Choice

Travis Corporation keeps careful track of the time required to fill orders.The times recorded for a particular order appear below:
$$\begin{array} { | l | c | } \hline & \text { Hours } \\\hline \text { Processing Time } & 0.7 \\\hline \text { Inspection Time } & 0.3 \\\hline \text { Moving Time } & 2.9 \\\hline \text { Storing Time } & 8.7 \\\hline\end{array}$$ The manufacturing cycle efficiency (MCE) was closest to:

• A) 0.73.
• B) 0.06.
• C) 0.15.
• D) 0.02.

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Definitions:

Minimum Required Rate

The lowest rate of return considered acceptable by investors for investing in a financial instrument, based on risk and alternative opportunities.

Average Operating Assets

An average value of the assets used in the regular operations of a business over a specific period.

Net Operating Income

A measure of a company's profitability, calculated as the difference between its total revenue and operating expenses, excluding taxes and interest.

Return On Investment

A financial ratio used to calculate the profitability of an investment, comparing the gain from an investment relative to its cost.