Sark Incorporated Is Out of Stock for a Key Item

question 61

Multiple Choice

Sark Incorporated is out of stock for a key item, which has a backorder of 200 units. An open order of 750 units is scheduled for arrival on the following Monday. What is the current inventory position at Sark?

• A) less than or equal to 0 units
• B) greater than 0 but less than or equal to 500 units
• C) greater than 500 but less than or equal to 750 units
• D) greater than 750 units

---

Definitions:

Last Dollar Spent

The concept of allocating resources until the marginal utility of expenditure on each good or service is equal, maximizing utility.

Labor Productivity

A measure of the amount of goods and services produced by one hour of labor.

Capital-Intensive

A business process or industry that requires large amounts of capital investment in comparison to labor.

Average Product

The output per unit of a given input, typically labor, calculated by dividing total product by the quantity of that input.