Question

The MPS calls for 110 units of Product M. There are currently 30 of Product M on hand. Each M requires 4 of Component N. There are 20 units of N on hand. The net requirements for N are

Answer

a. 150

b. 170

c. 300

d. 320

e.440

Answer 1

c. 300

Step-by-step explanation:

The computations of the net requirement of N are shown below:

= Calling units - current units

= 110 units - 30 units

= 80 units

Each M requires 4 of N components

That means

= Remaining units × required component

= 80 units × 4

= 320 units

And in hand, it has 20 units

So, the net requirement would be

= 320 units - 20 units

= 300 units