4.- A real estate agent is considering changing his cell phone plan. There are three plans to choose from, all include a $20 per month charge. Plan A costs $0.45 per minute for calls in the morning and $0.20 per minute for calls in the afternoon. Plan B costs $0.55 per minute for calls in the morning and $0.15 per minute for calls in the afternoon. Plan C has a constant cost of $80 with 200 minutes of calls per month and a charge of $0.40 per minute after 200 minutes regardless of whether it is in the morning or afternoon. a) Determine the total charge for each plan for 120 minutes in the morning and 40 minutes in the afternoon in one month. b) If the agent uses the call service only in the morning, what is the range of minutes in which each plan is optimal?
4.- A real estate agent is considering changing his cell phone plan. There are three plans to choose from, all include a $20 per month charge. Plan A costs $0.45 per minute for calls in the morning and $0.20 per minute for calls in the afternoon. Plan B costs $0.55 per minute for calls in the morning and $0.15 per minute for calls in the afternoon. Plan C has a constant cost of $80 with 200 minutes of calls per month and a charge of $0.40 per minute after 200 minutes regardless of whether it is in the morning or afternoon. a) Determine the total charge for each plan for 120 minutes in the morning and 40 minutes in the afternoon in one month. b) If the agent uses the call service only in the morning, what is the range of minutes in which each plan is optimal?
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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