A real estate agent is considering changing her cell phone

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Reference no: EM13382192

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 $30. Plan A has a cost of $0.42 a minute for daytime calls and $0.3 a minute for evening calls. Plan B has a charge of $0.57 a minute for daytime calls and $0.14 a minute for evening calls. Plan C has a flat rate of $92 with 200 minutes of calls allowed per month and a charge of $.40 per minute beyond that, day or evening.

a. Determine the total charge under each plan for this case: 114 minutes of day calls and 49 minutes of evening calls in a month.

Cost for Plan A $
Cost for Plan B $
Cost for Plan C $

b. If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round your answer to the nearest whole number.)

Plan A is optimal for zero to less than minutes. Plan C is optimal from minutes or more.

c. 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?

Reference no: EM13382192

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