Lesser Corporation Has Four Products That Use the Same Constrained

question 39

Multiple Choice

Lesser Corporation has four products that use the same constrained resource. Data concerning those products appear below:
The company does not have enough of the constrained resource to satisfy for demand of all four products.

-From the standpoint of the entire company,if it is a choice between sales of one unit of one product versus another,which product should the salespersons emphasize?

• A)X400
• B)X100
• C)X300
• D)X200

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Definitions:

Debt-to-Equity Ratio

A financial measure reflecting the mix of equity and debt financing used to support a company's assets.

Acid-test Ratio

A stringent indicator of a company's short-term liquidity, measuring its ability to cover short-term liabilities with its most liquid assets, excluding inventory.

Working Capital

A financial metric representing the operational liquidity available to a business, calculated as current assets minus current liabilities.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, used to evaluate if the stock is undervalued or overvalued.