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Answer the Following Questions Using the Information Below:
North Ryde $21.25\quad\quad\quad \$ 21.25

Question 84

Multiple Choice

Answer the following questions using the information below:
North Ryde Optics sells optical equipment.Vision Lenses manufactures special glass lenses.North Ryde Optics orders 10 400 lenses per year,200 per week at $20 per lens.Vision Lenses covers all shipping costs.North Ryde Optics earns 30% on its cash investments.The purchase-order lead time is 2.5 weeks.North Ryde Optics sells 250 lenses per week.The following data are available:
Relevant ordering costs per purchase order $21.25\quad\quad\quad \$ 21.25
Relevant insurance, materials handling, breakage,
and so on, per year $2.50\quad\quad\quad\quad\$2.50

-What is the reorder point?


A) 415.5 lenses
B) 625 lenses
C) 397.5 lenses
D) 441 lenses

Correct Answer:

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