Manifestation, a leading fashion boutique in Singapore, is planning to use the services of a digital marketing solution provider to increase its online sales. It has shortlisted two digital marketing solution providers, the details of which are given below:

At the expected number of orders, which solution has the lower cost? What is the indifference level of orders or break-even level of orders? What is the meaning of this level of orders?

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Annual fixed cost Variable cost per order Estimated number of orders Solution A SGD 150,000 SGD 8.00 40,000 Solution B SGD 310,000 SGD 6.00 40,000