A company carries 10 items in stock, each with an economic-order quantity of $20,000. Through a program of component standardization, the 10 items…

15.1. A company carries 10 items in stock, each with an economic-order quantity of$20,000. Through a program of component standardization, the 10 items arereduced to 5. The total annual demand is the same, but the annual demand for eachitem is twice what it was before. In Chapter 10, we learned that the economic-orderquantity varies as the square root of the annual demand. Since the annual demandfor each item is now doubled, calculate:a. The new EOQ.b. The total average inventory before standardization.c. The total average inventory after standardization.