20-16 EOQ for retailer. (LO 1) Fan Base (FB) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its soccer jerseys product line. This is a highly popular item. Data for the year are Each jersey costs FB $40 and sells for $80. The $8 carrying cost per jersey per year comprises the required return on investment of $4.80 (= 12% of $40 purchase price) plus $3.20 in relevant insurance, handling, and theft-related costs. The purchasing lead time is 7 days. FB is open 365 days a year. Required 1. Calculate the EOQ. 2. Calculate the number of orders that will be placed each year. 3. Calculate the reorder point. Check Figure: 1.EOQ1,000 jerseys