King Company sells optical equipment. Lens Company manufactures special glass lenses. King Company orders 5,200 lenses per year, 100 per week at $20 per lens. Lens Company covers all the shipping costs. King Company earns 30% on its cash investments. The purchase-oder lead time is 2.5 weeks. King Company sells 125 lenses per wekk. The following data is available:

Ordering costs per purchase order	$21.25
Insurance, materials handling, breakage, and so on	2.5

1. What is the economic order quantity for King Company?

A. 325

B. 297

C. 210

D. 161

2. What is the reorder point?

A. 220.5 lenses

B. 312.5 lenses

C. 397.5 lenses

D. 415.5 lenses