You are serving as an inventory consultant for Office Max Warehouse. They are interested in an inventory policy for a popular stapler that they stock. Weekly demand for the stapler is normally distributed with a mean of 130 and a standard deviation of 15. The warehouse purchases the staplers for $7.25 and sells them for $10.75. Their supplier requires a 3 week order lead time. The warehouse accountant estimates an ordering cost of $55 per order and a 22% annual interest rate for determining holding costs. The accountant has also estimated a penalty cost of $9.50 per unit when the staplers are not available. Assume 52 weeks per year and 12 months per year. 1. (8 points) Find (Q.R) using a Type 1 Service Level of 95%. 2. (5 points) What is the imputed penalty cost if we are looking for a Type 1 Service Level of 95%? 3. (5 points) How will the imputed penalty cost change is we are targeting on an even higher Type 1 Service Level (e.g., 98%)? Explain your logic/reasoning.