Suppose that the agent expects both daytime and evening call

Assignment Help Operation Management
Reference no: EM1382663

A real estate agent is considering changing her cell phone plan. There are three plans to choose from, all of which involve a monthly service charge of $19. Plan A has a cost of $0.45 a minute for daytime calls and $0.28 a minute for evening calls. Plan B has a charge of $0.59 a minute for daytime calls and $0.12 a minute for evening calls.

Q: Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of call minutes for daytime calls) would she be indifferent between plans A and B?

According to answers in the book I need to solve the following formula.

A: $19 + $0.45D + $0.28E
B: $19 + $0.59D + $0.12E

"Setting these equal and solving, D = 1.143 E. Thus, if E = 100 minutes, then D = 114 minutes. Hence, for 53.33 percent daytime minutes, the agent would be indifferent between the two plans."

How exactly do I solve the above ot get the 1.143, 100 and 53.33? Please include step-by-step solution if you would like to be rated.

Reference no: EM1382663

How can project manager balancing the code of conduct

how can project manager Balancing the code of conduct of both the firm and the client company.? how can project manager Respecting the time zones of employees across the count

What is the purpose of environmental analysis

What is the purpose of environmental analysis. What are the implications of environmental analysis in the creation of your strategic plan. What are the major benefits of compe

Reworking findings to make them more useful or appealing

Reworking findings to make them more useful or appealing: When others offer an opposing view, try to: Documents that focus on what people need to learn, do, or decide are:

What are components of a management science model

What are the primary advantages of their abstraction of a mathematical model over other models? Why are these advantages important? What are the components of a management sci

How frequently should order for rivets

A company uses rivets at a rate of 5,000 kg per year, rivets costing Rs.2 per kg. It costs Rs.20 to place an order and the carrying cost of inventory is 10 % per annum. How

Define the competitive bidding trap

Under what conditions does competitive bidding normally assure the buying manager of obtaining the lowest possible price? Based on the case, define the “competitive bidding tr

Describe successful listening skills and process

Describe successful listening skills and process that can aid communication. How can these skills help you to become an effective leader in your workplace? Your response shoul

Develop your small acquisition project schedule

you are determining all of the processes, activities, and tasks you will need to incorporate in your acquisition project, which will be small in nature compared to a larger-

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd