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An order for 140 units of Product A has been placed. There are currently 20 units of Product A on hand. Each Product A requires 3 units of Component B. There are 40 units of Component B on hand. What are the net requirements for Component B

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Answer:

Order for unit B = 440

Explanation:

Given:

Order for unit A = 140 units

Units A in hand = 20 units

Units B in hand = 40 units

1 unit A required 3 units of B

Find:

Order for unit B

Computation:

Total unit of A = 140 + 20

Total unit of A = 160 units

Total unit B required = 160 x 3

Total unit B required = 480

Order for unit B = Total unit B required - Units B in hand

Order for unit B = 480 - 40

Order for unit B = 440

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