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Vision Company Sells Optical Equipment

Question 115

Multiple Choice

Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,400 lenses per year, 220 per week, at $40 per lens. Blitz covers all shipping costs. Vision earns 22% on its cash investments. The purchase-order lead time is 3.0 weeks. Vision sells 315 lenses per week. The following data are available:
Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,400 lenses per year, 220 per week, at $40 per lens. Blitz covers all shipping costs. Vision earns 22% on its cash investments. The purchase-order lead time is 3.0 weeks. Vision sells 315 lenses per week. The following data are available: What is the reorder point? A) 660 lenses B) 945.0 lenses C) 1318 lenses D) 1605.0 lenses
What is the reorder point?


A) 660 lenses
B) 945.0 lenses
C) 1318 lenses
D) 1605.0 lenses

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