Answer the Following Questions Using the Information Below

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 reorder point?

A) 220.5 lenses
B) 312.5 lenses
C) 397.5 lenses
D) 415.5 lenses