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Answer the Following Questions Using the Information Below:
Vision Company

Question 87

Multiple Choice

Answer the following questions using the information below:
Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,400 lenses per year, 200 per week, at $35 per lens. Blitz covers all shipping costs. Vision earns 25% on its cash investments. The purchase-order lead time is 2.5 weeks. Vision sells 225 lenses per week. The following data are available:
Relevant ordering costs per purchase order $41.25Relevant insurance, materials handling, breakage,  and so on, per year4.50\begin{array} { l } \text {Relevant ordering costs per purchase order }&\$41.25 \\ \text {Relevant insurance, materials handling, breakage, }& \\ \text { and so on, per year}&4.50 \\\end{array}

-What is the economic order quantity for Vision?


A) 457 lenses
B) 328 lenses
C) 266 lenses
D) 161 lenses

Correct Answer:

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