Multiple Choice
Answer the following questions using the information below:
Owen-King Company sells optical equipment. Lens Company manufactures special glass lenses. Owen-King Company orders 5,200 lenses per year, 100 per week, at $20 per lens. Lens Company covers all shipping costs. Owen-King Company earns 30% on its cash investments. The purchase-order lead time is 2.5 weeks. Owen-King Company sells 125 lenses per week. The following data are available:
-What is the economic order quantity for Owen-King Company?
A) 325 lenses
B) 297 lenses
C) 210 lenses
D) 161 lenses
Correct Answer:
Verified
Correct Answer:
Verified
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