An order for 50 units of Product A and 60 of B has been placed. There are currently 25 units of Product B on hand. Each A requires 2 units of Part C; each B requires 5 units of C. There are 160 units of C available. What are the net requirements for C?
A) 115
B) 175
C) 240
D) 690
E) 700

Question

Quizplus · Accepted Answer

The net requirements for C are calculated as follows: Product A needs 2 units of C per unit, so for 50 units of A, 100 units of C are needed. Product B needs 5 units of C per unit, so for 60 units of B, 300 units of C are needed. However, there are already 25 units of B on hand, which means only 35 units of B need to be produced, requiring 175 units of C (35 units of B * 5 units of C). Therefore, the total requirement for C is 100 (for A) + 175 (for B) = 275 units of C. Since there are 160 units of C available, the net requirement is 275 - 160 = 115 units of C.

An Order for 50 Units of Product a and 60