End Item a Requires Three Component Parts: B,C,and D

question 1

Multiple Choice

End item A requires three component parts: B,C,and D.The bill of materials indicates that for each completed A,one unit of B,2 units of C,and 1 unit of D are required.Current inventory for the four items is as follows: there are 18 As,40 Bs,50 Cs and 35 Ds in stock.If the lead time for all items is one week and there are no scheduled receipts for any item,how many units of product A can be delivered to customers at the start of next week (week 2) ?

• A) 13
• B) 25
• C) 31
• D) 43

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Definitions:

Market/Book Ratio

A financial ratio that compares a company's market value to its book value, indicating how much investors are paying for each dollar of net assets.

Price/Earnings Ratio

A valuation metric that compares a company's current share price to its per-share earnings, used to evaluate if a stock is over or under-valued.

Market Value Added

A calculation that shows the difference between the market value of a company and its capitalized value on the balance sheet.

EBITDA Coverage Ratio

A financial ratio that measures a company's ability to pay off its incurred debt, calculated by dividing EBITDA by total debt service costs.