RightTime (RT) Corporation operates a retail store featurin 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 very popular. Data for 2017 are as follows:

Each watch costs RT \($75\) and sells for \($200.\) The \($14\) carrying cost per watch per year consists of the required return on investment of \($9.00\) 

plus \($5.00\) in relevant insurance, handling, and storage costs. The purchasing lead time is 10 days. RT is open 365 days a year.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.

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