Mighty Oaks (MO) is an assisted living facility that provides its residents with senior lifestyle housing and basic health care services. MO trains its frontline staff to ensure residents receive good and compassionate assistance with daily life activities, such as taking medication, bathing, eating, and dressing. The work involved in assisted living facilities can be emotionally challenging and physically hard. For that reason, five people leave their MO job at the end of every month. To fill those vacancies, MO conducts training sessions to add 10 new workers to its frontline staff every two months. The training sessions take one week to complete and have a fixed cost of $2,000 no matter how many new hires are being trained. After completing their training, workers are on call and assigned to part-time duties while they wait for a full-time spot to open. Management at MO has estimated that each on-call worker costs $7,500 annually.

To improve staff retention, MO management is implementing several initiatives, one of which is "Salmon Friday." On Fridays, MO's dining menu includes a salmon special option for residents and visitors that can be purchased for $10. The profits of the salmon special are donated to a Year-End Fund created by MO management to reward its frontline staff at the end of the year. Each serving of this special has a cost of $7.

To estimate the demand for the salmon special, the kitchen staff conducted a survey. The results indicated an average demand of 50 servings each Friday, with a standard deviation of 10servings. (The demand can be assumed to follow a normal distribution.) The kitchen is planning to contact their vendors and order the necessary ingredients to cook 50 servings of the salmon special. Any leftover servings are raffled between the MO workers on site for free.

Calculate the total annual cost of the Mighty Oaks recruitment strategy. Please include calculations.

Is the current strategy optimal? If the current strategy is not minimizing the total annual cost, describe the optimal strategy, including its total annual cost. Please include your calculations.