Instructions

This assignment will help us apply the High$-$Low Method to determine the variable and fixed costs.

Phone Plan Comparison

Use the High$-$Low Method to determine the relationship between cell phone data plans and their prices. The High$-$Low method allows you to determine the

variable and fixed portion of each plan by first computing the variable costs as follows:

Phone Plan Details

Plan A is $5$ GB for $$\frac{40}{?}$ Month

Plan $B$ is $25GB$ for $$\frac{60}{?}$ Month

Compute Variable Costs

Variable costs per $GB=$ costs $\frac{?}{?}GB=\frac{\text{\$}60-\text{\$}40}{25GB-5GB}=$$$\frac{1}{G}B$

Compute Fixed Costs $($Using Plan A$)$

Total Costs Variable costs per $G{B}^{**}$ # of GB$)+$ Fixed Costs

Where $$40=($$$\frac{1}{G}{B}^{**}5GB)+$ Fixed Costs

So Fixed Costs $=$$$35$

Do the following

Compute variable costs per GB and fixed costs for another large phone company using the following details:

Plan A of $100GB$ for $$80$

Plan B of $150GB$ for $$100.$

Submit your work as an uploaded Excel, Word, or picture file of your handwritten work.

Answer rating: 100% (QA)

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