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A real estate agent is considering changing her land line phone pid involve a monthly service charge of $20. Plan A has a cost of $.38 a minute for daytime calls and $.17 a minute for evening calls. Plan B has a charge of $.47 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 275 minutes of calls allowed per month and a charge of $.36 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost for Plan A Cost for Plan B Cost for Plan C $ $ $ 72.40 82.00 95.00 b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round Include the indifference point itself in each answer.)

A real estate agent is considering changing her land line phone pid involve a monthly service charge of $20. Plan A has a cost of $.38 a minute for daytime calls and $.17 a minute for evening calls. Plan B has a charge of $.47 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 275 minutes of calls allowed per month and a charge of $.36 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost for Plan A Cost for Plan B Cost for Plan C $ $ $ 72.40 82.00 95.00 b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round Include the indifference point itself in each answer.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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ces A real estate agent is considering changing her land line phone plan. The involve a monthly service charge of $20. Plan A has a cost of $.38 a minute for daytime calls and $.17 a minute for evening calls. Plan B has a charge of $.47 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 275 minutes of calls allowed per month and a charge of $.36 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost for Plan A Cost for Plan B Cost for Plan C $ $ $ 72.40 82.00 95.00 b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number. Include the indifference point itself in each answer.) Plan A is optimal from zero to minutes. Plan C is optimal from 82 minutes onward.
Transcribed Image Text:ces A real estate agent is considering changing her land line phone plan. The involve a monthly service charge of $20. Plan A has a cost of $.38 a minute for daytime calls and $.17 a minute for evening calls. Plan B has a charge of $.47 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 275 minutes of calls allowed per month and a charge of $.36 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost for Plan A Cost for Plan B Cost for Plan C $ $ $ 72.40 82.00 95.00 b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number. Include the indifference point itself in each answer.) Plan A is optimal from zero to minutes. Plan C is optimal from 82 minutes onward.
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