4. PART II: Short Problems (66 Points) CD World is an independent electronics store that sells blank compact disks. CD World purchases the CDs from Sonetek at $14 a package (each package contains 10 disks. Sonetek pays for all incoming freight. No inspection is necessary at CD World because Sonetek supplies quality merchandise. CD World's annual demand is 13,000 packages, at a rate of 250 packages per week. CD world requires a 15% annual rate of return on investment. The purchase-order lead time is two weeks. Relevant ordering cost per purchase order is $200. Relevant carrying cost per package per year is: 1. Required annual return on investment, 0.15 X $14 Relevant insurance, materials handling, breakage, Shrinkage, and so on, per year $2.10 3.10 $5.20 Total Required: Provide the Formula. a. What is the EOQ of packages of disks? b. Compute the Economic Order Quantity. c. Compute the Relevant Total Cost. d. Compute the Reorder Point