Mountain 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: (Click the icon to view the estimated costs.) Requirements 1. At the expected level of orders, which online approach has the lower cost? 2. What is the indifference level of orders, or the "break-even" level of orders? What is the meaning of this level of orders? Requirement 1. At the expected level of orders, which online approach has the lower cost? Begin by calculating the total expected cost of each alternative given the expected number of orders. Total expected cost of 75,000 orders Alternative 1 $ 1,090,000 $ Alternative 2 790,000 At the expected level of orders, Alternative 2 has the lower cost Requirement 2. What is the indifference level of orders, or the "break-even" level of orders? What is the meaning of this level of orders? Begin by determining the formula needed, and then enter the amounts to determine the indifference level in number of orders. Indifference level in orders ssignment Question 13, E3 Part 3 Mountain Sports, an outdoor sports retailer, is planning to add a Web site f (Click the icon to view the estimated costs.) Difference in fixed cost Difference in variable cost per order Fixed cost of Alternative 1 proach has the lower c break-even" level of or Fixed cost of Alternative 2 Number of orders Total cost of Alternative 1 Total cost of Alternative 2 Variable cost of Alternative 1 Variable cost of Alternative 2 ch online approach has alternative given the exp ative 1 090,000 $ Alternative e lower cost. 790,0 ers, or the "break-even" enter the amounts to de ed costs.) , which c orders, Difference in fixed cost Difference in variable cost per order Fixed cost of Alternative 1 el of ord Fixed cost of Alternative 2 ed cost Number of orders s ernative rence lev needed, a Total cost of Alternative 1 Total cost of Alternative 2 Variable cost of Alternative 1 Variable cost of Alternative 2 aning of this leve ers. at is the meaning c nce level in numbe = Indifference level in orde