The First Unit of a Product Took 1,000 Hours to Build

question 104

Multiple Choice

The first unit of a product took 1,000 hours to build and the learning curve is 85%.How long will it take to make the first 5 units? (Use Table E.3)

• A)less than 4,005 hours
• B)from 4,005 to 4,015 hours
• C)from 4,015 to 4,025 hours
• D)from 4,025 to 4,035 hours
• E)from 4,035 to 4,045 hours

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Definitions:

Quick Ratio

Quick ratio, also known as acid-test ratio, is a liquidity metric that indicates a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.

Return on Assets

A profitability ratio indicating the efficiency with which a company uses its assets to generate net income, calculated by dividing net income by total assets.

Return on Equity

A financial ratio that measures the profitability of a company in relation to shareholders' equity, indicating how effectively equity supports operations and growth.