Question
9. Kim Davis has decided to purchase a cellular phone, but she is unsure about which rate plan to select. The regular plan charges a
9. Kim Davis 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 Kim expects to use the phone for 21 hours per month, which plan should she
select?
b. At what level of use would Kim be indifferent between the two plans?
10. Annie Russell, a student at Tech, plans to open a hot dog stand inside Tech's football
stadium during home games. There are seven home games scheduled for the
upcoming season. She must pay the Tech athletic department a vendor's fee of $3,000
for the season. Her stand and other equipment will cost her $4,500 for the season.
She estimates that each hot dog she sells will cost her $0.35. She has talked to friends
at other universities who sell hot dogs at games. Based on their information and the
athletic department's forecast that each game will sell out, she anticipates that she will
sell approximately 2,000 hot dogs during each game. What price should she charge
for a hot dog in order to break even?
11. Hannah Byers and Kathleen Taylor are considering the possibility of teaching
swimming to kids during the summer. A local swim club opens its pool at noon each
day, so it is available to rent during the morning. The cost of renting the pool during
the10-week period for which Hannah and Kathleen would need it is $1,700. The pool
would also charge Hannah and Kathleen an admission, towel service, and life guarding
fee of $7 per pupil, and Hannah and Kathleen estimate an additional $5 cost per
student to hire several assistants. Hannah and Kathleen plan to charge $75 per
student for the 10-week swimming class.
a. How many pupils do Hannah and Kathleen need to enroll in their class to break
even?
b. If Hannah and Kathleen want to make a profit of $5,000 for the summer, how
many pupils do they need to enroll?
c. Hannah and Kathleen estimate that they might not be able to enroll more than
60 pupils. If they enroll this many pupils, how much would they need to charge
per pupil in order to realize their profit goal of $5,000?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started