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

Question

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

Quizplus · Accepted Answer

The Answer of 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

Answer the Following Questions Using the Information Below