Vision Company Sells Optical Equipment

Multiple Choice

Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,700 lenses per year, 260 per week, at $38 per lens. Blitz covers all shipping costs. Vision earns 22% on its cash investments. The purchase-order lead time is 4.0 weeks. Vision sells 315 lenses per week. The following data are available:

What is the economic order quantity for Vision?

A) 439 lenses
B) 356 lenses
C) 276 lenses
D) 195 lenses