Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly

image text in transcribedimage text in transcribed A real estate agent is considering changing her land line 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 $.42 a minute for daytime calls and $.17 a minute for evening calls. Plan B has a charge of $.52 a minute for daytime calls and $.15 a minute for evening calls. Plan C has a flat rate of $80 with 275 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 150 minutes of day calls and 70 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) 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.) c. 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Pain Management Workbook

Authors: Rachel Zoffness, Mark A. Schumacher

1st Edition

1684036445, 978-1684036448

More Books

Students also viewed these General Management questions