Ana Mayer is getting ready to open a small restaurant. She is on a tight budget and must choose between the following long-distance phone plans: Plan A: Pay 9 cents per minute of long-distance calling. Plan B: Pay a fixed monthly fee of $14 for up to 300 long-distance minutes and 4 cents per minute thereafter (if she uses fewer than 300 minutes in any month, she still pays $14 for the month). Plan C: Pay a fixed monthly fee of $22 for up to 480 long-distance minutes and 2 cents per minute thereafter (if she uses fewer than 480 minutes, she still pays $22 for the month). Required Which plan should Mayer choose if she expects to make 100 minutes of long-distance calls? 300 minutes? 500 minutes?
Ana Mayer is getting ready to open a small restaurant. She is on a tight budget and must choose between the following long-distance phone plans: Plan A: Pay 9 cents per minute of long-distance calling. Plan B: Pay a fixed monthly fee of $14 for up to 300 long-distance minutes and 4 cents per minute thereafter (if she uses fewer than 300 minutes in any month, she still pays $14 for the month). Plan C: Pay a fixed monthly fee of $22 for up to 480 long-distance minutes and 2 cents per minute thereafter (if she uses fewer than 480 minutes, she still pays $22 for the month). Required Which plan should Mayer choose if she expects to make 100 minutes of long-distance calls? 300 minutes? 500 minutes?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ana Mayer is getting ready to open a small restaurant. She is on a tight
budget and must choose between the following long-distance phone plans:
Plan A: Pay 9 cents per minute of long-distance calling.
Plan B: Pay a fixed monthly fee of $14 for up to 300 long-distance minutes,
and 4 cents per minute thereafter (if she uses fewer than 300
minutes in any month, she still pays $14 for the month).
Plan C: Pay a fixed monthly fee of $22 for up to 480 long-distance minutes
and 2 cents per minute thereafter (if she uses fewer than 480
minutes, she still pays $22 for the month).
Required
Which plan should Mayer choose if she expects to make 100 minutes of
long-distance calls? 300 minutes? 500 minutes?
For each different level of monthly long-distance calling, select the plan that
Mayer should choose.
Plan
100 minutes 300 minutes 500 minutes
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