e of ContentsModule 5-Cell Module 5-Cell Phone Plans each of these plans (Carrie
ID: 2418254 • Letter: E
Question
e of ContentsModule 5-Cell Module 5-Cell Phone Plans each of these plans (Carriers A and B) has a 19% tax on all plan charges (including overage charges) plus a $2.52 regulatory and administrative fee. You do not pay the tax on the regulatory and administrative fee. o Carrier A Plan A-1: $80 per month. Includes 450 minutes, 1,000 texts, and 3 GB of data. Plan A-2: $110 per month. Includes unlimited talk, unlimited texts, and unlimited data. . If you exceed the plan minutes, the overage charge is s0.25 per minute. . If you exceed the plan texts, the overage charge is $0.18 per text message for the first excess 500 and $0.35 per text message for any additional texts beyond the 500. .If you exceed the data limit, the overage charge is $0.000015 per KB. o Carrier B .Plan 8-1:$60 per month. Includes 300 minutes, 1,000 texts, 2 GB of data. Plan 8-2: $85 per month. Includes 500 minutes, unlimited texts, 3.5 GB of data. Overage charges If you exceed the plan minutes, the overage charge is $0.20 per minute. If you exceed the plan texts, the overage charge is $0.20 per text message. If you exceed the data limit, the overage charge is $0.01 per MB . . .Explanation / Answer
Solution:
In plan B-2, the number of texts is unlimited, so no overage charges for the texts. The remaining usage is same as plan B-1.
The cost for plan B-1 is $74.336 ( 60 + 1.4*1024) per month which incudes 3.4 GB data and 255 minutes.
If it uses 500 text extra , cost becomes 74.336 + 0.20* 500 = $174.336
If it uses 250 texts extra, then cost = 74.336+ 250*0.20 = $124.336
If it uses 100 texts extra, then cost = 74.336+ 100*0.20 = $94.336
If it uses 60 texts extra, then cost = 74.336+60*0.20 = $86.336
Therefore, when 60 texts extra are used, the cost is $1.336 more than plan B-2 cost which is $85 per month.
Hence, minimum 60 texts should be used in order to make plan B-2 option less expensive.
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