Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 1 2 , 4 0 0 lenses per year, 2 1 0

Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 12,400 lenses per year, 210 per week, at $39 per ler Blitz covers all shipping costs. Vision earns 20% on its cash investments. The purchase - order lead time is 2.5 weeks. Vision sells 265 lenses per week. The following data are available:
Relevant ordering costs per purchase order
$46.25
Relevant insurance, materials handling, breakage, and so on, per year
$5.50
What is the economic order quantity for Vision?
A.294 lenses
B.383 lenses
C.457 lenses
D.208 lenses
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Charles T Horngren, Gary L Sundem, William O Stratton, Howard D Teall, George Gekas

5th Canadian Edition

0131922688, 978-0131922686

More Books

Students also viewed these Accounting questions

Question

=+d) Perform the ANOVA and report your conclusions.

Answered: 1 week ago