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Eyeglass Company sells eyeglasses and a lot of it's sales are for specialty eyegia Lens Company manufactures specialty eyeglasses. Eyeglass Company orders 5,200 specialty eyelasses
Eyeglass Company sells eyeglasses and a lot of it's sales are for specialty eyegia Lens Company manufactures specialty eyeglasses. Eyeglass Company orders 5,200 specialty eyelasses per year, 100 per week at $20 per special eyeglass. Lens Company covers all shipping costs. Eyeglass Company earns 30% on its cash investments. The purchase order lead time is 2.5 weeks. Eyeglass Company sells 125 specialty eyeglasses per week. The following data is available: Relevant ordering costs per purchase order $21.25 Relevant insurance, materials handling, breakage, and so on, per year $2.50. Required: What is the economic order quantity for Eyeglass Company
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