Shoe shine is a local retail shoe store located on the north side of centerville. annual demand for a popular sandal is 500 pairs, and john dirk, the owner of shoe shine, has been in the habit of ordering 100 pairs at a time. john estimates that the ordering cost is $10 per order. the cost of the sandal is $5 per pair. for john's ordering policy to be correct, what would the carrying cost as a percentage of the unit cost have to be? if the carrying cost were 10% of the cost, what would the optimal order quantity be?

Afirm plans to begin production of a new small appliance. the manager must decide whether to purchase the motors for the appliance from a vendor at $10 each or to produce them in-house. either of two processes could be used for in-house production; process a would have an annual fixed cost of $200,000 and a variable cost of $7 per unit, and process b would have an annual fixed cost of $175,000 and a variable cost of $8 per unit. determine the range of annual volume for which each of the alternatives would be best. (round your first answer to the nearest whole number. include the indifference value itself in this answer.)