plan to select. The "regular" plan charges a fixed fee of P55 per month for 1,000 minutes of e plus P0.33 per minute for any time over 1,000 minutes. The "executive" plan charges a fee of P100 per month for 1,200 minutes of airtime plus P0.25 per minute over 1,200 es. . If Perla expects to use the phone for 21 hours per month, which plan should she select? At what level of use would Perla be indifferent between the two plans?
plan to select. The "regular" plan charges a fixed fee of P55 per month for 1,000 minutes of e plus P0.33 per minute for any time over 1,000 minutes. The "executive" plan charges a fee of P100 per month for 1,200 minutes of airtime plus P0.25 per minute over 1,200 es. . If Perla expects to use the phone for 21 hours per month, which plan should she select? At what level of use would Perla be indifferent between the two plans?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![7.
Perla Santos has decided to purchase a cellular phone, but she is unsure about which
rate plan to select. The "regular" plan charges a fixed fee of $55 per month for 1,000 minutes of
airtime plus 0.33 per minute for any time over 1,000 minutes. The "executive" plan charges a
fixed fee of 100 per month for 1,200 minutes of airtime plus 0.25 per minute over 1,200
minutes.
a. If Perla expects to use the phone for 21 hours per month, which plan should she select?
b. At what level of use would Perla be indifferent between the two plans?
7](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F38858cf2-5338-4259-b3b1-bb2ff8767246%2F0b8d87a2-8593-4877-a961-9d72dcf4f97c%2Fd7t9cfb_processed.png&w=3840&q=75)
Transcribed Image Text:7.
Perla Santos has decided to purchase a cellular phone, but she is unsure about which
rate plan to select. The "regular" plan charges a fixed fee of $55 per month for 1,000 minutes of
airtime plus 0.33 per minute for any time over 1,000 minutes. The "executive" plan charges a
fixed fee of 100 per month for 1,200 minutes of airtime plus 0.25 per minute over 1,200
minutes.
a. If Perla expects to use the phone for 21 hours per month, which plan should she select?
b. At what level of use would Perla be indifferent between the two plans?
7
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