Mark makes bikes. Or, at least he has been for the last 10 years. He employs 5 workers and pays each $35,000 per year. The material and miscellaneous costs amount to $82.67 per bike. Carver approached Mark as an alternative to building their own bikes, since Carver Industries makes 1000 's of bikes per year right now. Carver requires a yearly fee of $200,000 plus only $57.50 per bike. Last year, Mark's firm produced 1250 bikes. Answer the following four questions (a through d) and show your answer and your work in the space below the question. You may either hand-write your work and submit a scan of the handwritten document or you may enter your work directly onto this Word document and then submit the Word file. Be sure to submit both pages (with the four questions answered). a. What was the total cost Mark experienced last year (25\%) b. What would the cost have been if Mark would have used Carver Industries last year? (25%) c. What is the indifference quantity between the two alternatives? (25%) d. If Mark expects the special patch demand to be 2250 orders next year, should he use Carver Industries? In doing this, how much would he save over the alternative? (25%)