Suppose that Juanita is deciding whether or not to buy a pair of sandals that she has been researching online, and also the best place to make her purchase. Three different stores in the area sell the sandals she likes, but some stores are more convenient for Juanita to reach than others. One option is her local shoe store located only 15 minutes away from where she works, where they charge a marked-up price of $122 for the sandals: A map of an area that displays Juanita's office and three stores. The store with the marked-up price is the closest to Juanita's office toward the northwest. The discounted price store is the farthest and it is toward the northeast of Juanita's office in a different area, and the store with the original price is towards the east of Juanita's office (across the river). Store Travel Time Each Way Price of a Sandals (Minutes) (Dollars per sandals) Local Shoe Store15/122 Different Neighborhood in Town30/105 Rural Outlet60/
75 Juanita earns an hourly wage of $26 at her job. In order to purchase her sandals she will have to take time off work, so each hour away from her job costs her $26 in lost income. Assume that Juanita’s travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Juanita incurs no additional costs other than the sandals, such as gas.