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:
$\begin{array} { l } \text {Relevant ordering costs per purchase order }&\$41.25 \\ \text {Relevant insurance, materials handling, breakage, }& \\ \text { and so on, per year}&4.50 \\\end{array}$

-What is the economic order quantity for Vision?

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

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Definitions:

Equation

A declaration within mathematics that equates two expressions, which usually involve constants and variables.

Equation

An assertion in mathematics that two expressions, often including variables, are equal.

Equation

An equation is a declaration that equates two mathematical expressions, often involving variables.

Extraneous Solutions

Solutions that are found in the process of solving an equation but do not satisfy the original equation.