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Social Science Clinic => Accounting => Topic started by: lidoalex on Mar 6, 2021

Title: Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision ...
Post by: lidoalex on Mar 6, 2021
Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision orders 11,700 lenses per year, 260 per week, at $38 per lens. Blitz covers all shipping costs. Vision earns 22% on its cash investments. The purchase-order lead time is 4.0 weeks. Vision sells 315 lenses per week. The following data are available:

Relevant ordering costs per purchase order$45.25
 Relevant insurance, materials handling, breakage,
and so on, per year$5.50

What is the economic order quantity for Vision?
◦ 439 lenses
◦ 356 lenses
◦ 276 lenses
◦ 195 lenses
Title: Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision ...
Post by: wshriver on Mar 6, 2021
276 lenses
Title: Re: Vision Company sells optical equipment. Blitz Company manufactures special glass lenses. Vision
Post by: john laren on Dec 17, 2021
thank you