Answer the Following Questions Using the Information Below

question 125

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 economic order quantity for Owen-King Company?

• A)325 lenses
• B)297 lenses
• C)210 lenses
• D)161 lenses

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Definitions:

Pressure Switch

A device that activates or deactivates electrical contact in response to changes in pressure level.

Proximity Switch

A sensor that detects the presence or absence of an object without physical contact, usually used in industrial applications to control machinery.

Capacitor Proximity Sensors

Sensors that use the capacitance change principle to detect the presence or absence of objects, often used in material handling and level control applications.