Wang Inc. sells exercise clothing and accessories. Wang regularly orders one brand of running shoe that costs $160 per pair. The shipments are made FOB destination (the seller pays all shipping costs). Annual demand is 24,000 pairs. Other relevant data: The company has a required rate of return of 11% on investments. Purchase order lead-time is four days. Relevant insurance costs, material handling, and so on are $9,600 per year. Relevant ordering costs are $60 per order. Required 1. Calculate EOQ 2. Calculate total annual relevant costs (annual ordering costs + carrying costs) 3. Assuming no stock-outs and the store is open for business 300 days a year, calculate the reorder point. 4. The Company's purchasing employee has consistently been ordering 500 pairs at a time and sees no reason to change. Calculate the potential benefit of using EOQ for Wang.