A real estate agent is considering changing her cell phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.44 a minute for daytime calls and $.19 a minute for evening calls. Plan B has a charge of $.54 a minute for daytime calls and $.15 a minute for evening calls. Plan C has a flat rate of $80 with 225 minutes of calls allowed per month and a charge of $.40 per minute beyond that, day or evening.

(Answer ALL of the the following questions please.

A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $9 each or to produce them in-house. Either of two processes could be used for in-house production; Process A would have an annual fixed cost of $170,000 and a variable cost of $5 per unit, and Process B would have an annual fixed cost of $190,000 and a variable cost of $4 per unit. Determine the range of annual volume for which each of the alternatives would be best. (Round your first answer to the nearest whole number. Include the indifference value itself in this answer. Enter your last answer as a whole number).

A company manufactures a product using machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 224 units per day. Annual demand is currently 60,000 units. It is forecasted that within two years, annual demand will triple. How many cells should the company plan to acquire to satisfy predicted demand under these conditions? Assuming that no cells currently exist. Assume 242 workdays per year. (Round up your answer to the next whole number.)

7)

8)

A manager must decide how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,100 per day, while two machines will result in a fixed cost of $3,900 per day. Variable costs will be $17 per customer, and revenue will be $45 per customer.

9)

The manager of a car wash must decide whether to have one or two wash lines. One line will mean a fixed cost of $5,800 a month, and two lines will mean a fixed cost of $8,700 a month. Each line would be able to process 15 cars an hour. Variable costs will be $3 per car, and revenue will be $5.95 per car. The manager projects an average demand of between 14 and 18 cars an hour. Would you recommend one or two lines? The car wash is open 290 hours a month.

10)

A real estate agent is considering changing her cell phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.44 a minute for daytime calls and $.19 a minute for evening calls. Plan B has a charge of $.54 a minute for daytime calls and $.15 a minute for evening calls. Plan C has a flat rate of $80 with 225 minutes of calls allowed per month and a charge of $.40 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 130 minutes of day calls and 50 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places. omit the sign in your response.) Cost for Plan A Cost for Plan B Cost for Plan C c. If the agent will 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 minutes onward d. Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans A and B? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places. Omit the sign in your response.) Point percent daytime minutes