A Real Estate Agent Is Considering Changing Her Cell Phone Plan
| 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 $29. Plan A has a cost of $0.45 a minute for daytime calls and $0.29 a minute for evening calls. Plan B has a charge of $0.51 a minute for daytime calls and $0.17 a minute for evening calls. Plan C has a flat rate of $95 with 253 minutes of calls allowed per month and a charge of $.40 per minute beyond that, day or evening. |
| a. | Determine the total charge under each plan for this case: 116 minutes of day calls and 40 minutes of evening calls in a month. (Round your answer to the nearest whole number. Omit the “$” sign in your response.) |
| Cost for Plan A | $ [removed] |
| Cost for Plan B | $ [removed] |
| Cost for Plan C | $ [removed] |
| c. | If the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round your answer to the nearest whole number.) |
| Plan A is optimal for zero to less than [removed] minutes. Plan C is optimal from [removed]minutes or more. |
| d. | Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of call minutes for daytime calls) would she be indifferent between plans A and B? (Round your answer to the nearest whole percent. Omit the “%” sign in your response.) |
| Point | [removed] percent daytime minutes |
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