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Q1 (2pt). Included in plan Plan A Plan B Plan C Premium C National Data 20GB/Month 50GB/Month 100GB/Month 200GB/Month Optional International Not Roaming Data Available
Q1 (2pt). Included in plan Plan A Plan B Plan C Premium C National Data 20GB/Month 50GB/Month 100GB/Month 200GB/Month Optional International Not Roaming Data Available 200MB/day 500MB/day 1GB/day Fixed and variable rates Plan A Plan B Plan C Premium C Fixed rate $30/Month $50/Month $70/Month ? Variable rate-National Data $2/GB $1/GB $0.50/GB $0.50/GB Variable rate-Optional Not International Roaming Data Applicable $5/day $8/day $10/day A telecommunication company currently offers three mobile plans (A, B, and C). Each plan includes a certain amount of data at a fixed and variable rate. For example, in Plan A, consumers should pay $30/month. Then, consumers can use 20GB/month. When consumers use more than 20GB in a month, they should pay $2 per an additional GB used in that month. Plans B and C include optional international roaming service. For example, in Plan B, consumers can choose to pay $5/day to use 200MB/day during an international travel. The company considers developing a new plan (Premium C) to target heavy users who frequently travel overseas. Premium C includes 200GB/month for national data and 1GB/day for optional international roaming data. On average, in each month, the target consumers use 250GB national data and 500MB/day roaming data for 7 days. Given the variable rates for Premium C in the second table, what is the maximum fixed rate the company can charge for Premium C such that the average target consumers choose Premium C? (A) $90/Month (B) $95/Month (C) $100/Month (D) $105/Month
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