American Sports, an outdoor sports retailer, is planning to add a Web site for online sales. The estimated

costs of two alternative approaches are as follows:

Alternative $1$ Alternative $2$

Annual fixed cost $$155,000\mathrm{.}00$ $$315,000\mathrm{.}00$

Variable cost per order $$9\mathrm{.}00$ $$7\mathrm{.}00$

Expected number of orders $45,00045,000$

At the expected level of orders, which online approach has the lower cost? What is the

indifference level of orders, or the $$break$-$even$$ level of orders? What is the meaning of this level of

orders?