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Selling price: 190
Purchase price from TEC: 0
Discount price at the end of the season (the salvage value): 70

What is the critical ratio?

Answer :

Final answer:

The critical ratio is a measure used in inventory management, calculated using the formula: Critical Ratio = (Due Date - Today’s Date) / Total Manufacturing Lead Time. More context is needed for an accurate calculation.

Explanation:

In business, the critical ratio is a measure used in inventory management. It is the ratio of the time remaining until an order's due date to the time required to complete the order. With the information you've provided, the below formula can be used:

Critical Ratio = (Due Date - Today’s Date) / Total Manufacturing Lead Time

In your question, more context is needed for an accurate calculation. By what date does the product need to be sold? How long does it take to prepare the product for sale? Once these elements are defined, you can substitute them into the formula to calculate the critical ratio.

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