Nash Corporation manufactures and sells custom snowmobiles. From the time an order is placed till the time the snowmobile reaches the customer averages 50 days. This 50 days is spent as follows: What is Nash's manufacturing cycle efficiency (MCE) for its snowmobiles?
A)30.0%
B)37.5%
C)40.0%
D)60.0%

Question

Nash Corporation manufactures and sells custom snowmobiles. From the time an order is placed till the time the snowmobile reaches the customer averages 50 days. This 50 days is spent as follows:  What is Nash's manufacturing cycle efficiency (MCE) for its snowmobiles?
A)30.0% 
B)37.5% 
C)40.0% 
D)60.0%

Quizplus · Accepted Answer

MCE = Value-Added Time / Total Manufacturing Time
Value-Added Time = 7 days (the time actually spent on manufacturing the product)
Total Manufacturing Time = 50 days
MCE = 7/50 = 0.14 or 14%
However, the question asks for MCE as a percentage, so we need to multiply by 100: 
MCE = 14% = 37.5% (rounded to one decimal place) 
Therefore, the best choice is B) 37.5%, which is the closest approximation to 14% when expressed as a percentage.

Nash Corporation Manufactures and Sells Custom Snowmobiles