A cell phone provider offers a plan that costs $40 per month plus $0.20 per text message sent or received. A comparable plan costs $70 per month but offers unlimited text messaging.
1 answer
Question:
A cell phone provider offers a plan that costs $40 per month plus $0.20 per text message sent or received. A comparable plan costs $70 per month but offers unlimited text messaging.
Answers
Answer:For, 250 messages the plans cost the same. Under 250 messages, plan A is cheaper.Step-by-step explanation:Giving the following information: Plan A:Fixed costs= $40Variable cost= $0.2Plan B:Fixed cost= $40I assume that we have to determine the indifference point, where the two plans cost the same.First, we need to establish the total cost equationsPlan A= 20 + 0.2xPlan B= 70x= number of messagesNow, we equal both formulas and isolate x:20 + 0.2x = 700.2x= 50x= 250For, 250 messages the plans cost the same. Under 250 messages, plan A is cheaper.
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