1. RightTime (RT) Corporation operates a retail store featuring wristwatches. It maintains an EOQ decision model to make inventory decisions. Currently, it is considering inventory decisions for its TagMe wristwatches product line, which is a very popular product line. Data for 2017 are as follows:

Expected annual demand for TagMe watches	7,000
Ordering cost per purchase order	$300
Carrying cost per year	$14 per wristwatch

Each watch costs RT $75, and sells for $200. The $14 carrying cost per jersey per year consists of the required return on investment of $9.00 (12% $75 purchase price) plus $5.00 in relevant insurance, handling, and storage costs. The purchasing lead time is 10 days. RT is open 365 days a year.

Required:

1. Calculate the EOQ for the TagMe product line.

2. Calculate the number of orders that will be placed each year.

3. Calculate the reorder point.