please do question 1 and 2 as they are related

1. Extended Play Stereo, Inc., sells 750 Super Power amplifiers per year and expects sales to continue at that rate. The holding cost is 22 percent of the unit cost per year, and the amplifiers cost $180 each. The cost to process a purchase order is $15. a. What is the EOQ ? b. How much will the company spend each year to order and hold Super Power amplifiers? 2. Suppose that Extended Play Stereo opens a second outlet but continues to use one central purchasing location. The holding cost, order cost, and item cost remain the same as in problem 1 , but the annual demand doubles to 1,500 units per year. a. What mill be the new bOQ ? How much has it increased from the EOQ of problem 1 ? plifier with the higher level of demand? year to order and hold this model of amc. Do economies of scale apply to inventory under some conditions