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Owen-King Company Sells Optical Equipment

Question 37

Multiple Choice

Owen-King Company sells optical equipment. Lens Company manufactures special glass lens. Owen-King Company orders 5,200 lens 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 lens per week. The following data is available: Owen-King Company sells optical equipment. Lens Company manufactures special glass lens. Owen-King Company orders 5,200 lens 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 lens per week. The following data is available:   What is the economic-order quantity for Owen-King Company? A)  325 lens B)  297 lens C)  210 lens D)  161 lens E)  92 lens What is the economic-order quantity for Owen-King Company?


A) 325 lens
B) 297 lens
C) 210 lens
D) 161 lens
E) 92 lens

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