Demand for Bluetooth headphones at Gator Electronic (GE) is 5,000 per month. Holding cost is 25 percent and the company incurs a fixed cost of $500 for each order placed.

1. The supplier offers an all unit quantity discount with a price of $200 per headphone for all orders under 1,000, a price of $195 for all orders of 1,000 or more but under 2,000 and a price of $190 for all orders of 2,000 or more. How many headphones should GE order per replenishment?
2. The supplier offers a marginal unit quantity discount with a price of $200 per headphone for all orders under 1,000, a price of $195 for all orders of 1,000 or more but under 2,000 and a price of $190 for all orders of 2,000 or more. How many headphones should GE order per replenishment?