Footlocker experiences demand for a popular athletic shoe that is nearly constant at 800 pairs per week. the cost per pair is $54. it costs $72 to place an order, and annual holding costs are charged at 22% of the cost per unit. the lead time is two weeks.
1. what is footlocker’s economic order quantity for this athletic shoe? 2. what is footlocker’s reorder point? 3. what is footlocker’s cycle time? 4. what is the total annual cost?

Brody and tanya recently sold some land they owned for $150,000. they received the land five years ago as a wedding gift from brody's aunt jeanette. she had already given them cash equal to the annual exclusion during that year. aunt jeanette purchased the land many years ago when the property was worth $20,000. at the time of the gift, the property was worth $100,000 and aunt jeanette paid $47,000 in gift tax. what is the long term capital gain on the sale of the property