A bond has a face value of $10,000 and a conversion ratio of 530. The stock is currently trading at $16.50. What is the conversion price?

The decision rule on whether to sell or process further

a) is process further as long as total revenue exceeds present revenues. b) is process further if incremental revenue from such processing exceeds the incremental processing costs. c) is process further if incremental revenue from such processing exceeds incremental fixed costs. d) varies from situation to situation.

Which of these statements about pipeline inventory is BEST?

A) Shorter lead times create more pipeline inventory. B) Changing an item's lot size does not directly affect the average level of the pipeline inventory. C) Pipeline inventory exists to avoid customer service problems. D) Pipeline inventory is used to even out volatile fluctuations in supply or demand.