ABC Communications Inc. purchases motherboards from Parasol Systems at the following price schedules:

Order Quantity Q Unit Price ($/board)

0<=Q<26 350

26<=Q<51 315

51<=Q 285

The demand of these motherboard at ABC is 14 boards per month. Order setup costs are $30, and inventory holding costs are based on a 20% annual interest rate.

1. Find the optimal order size Q* and the corresponding total annual cost G(Q*) for ABC, if Parasol Systems offers an all-units discount schedule.
2. Find the optimal order size Q* and the corresponding total annual cost G(Q*) for ABC, if Parasol Systems offers an incremental quantity discount schedule.