A real estate agent is considering changing her cell phone plan; there are three

Question

A real estate agent is considering changing her cell phone plan; there are three to chose from - all involve a monthly fee of $19.75 Plan A charges $0.51 per minute for daytime calls and $0.22 per minute for evening calls. Plan B charges $0.54 per minute for daytime calls and $0.15 per minute for evening calls. Plan C has a flat rate of $48 with up to 200 minutes of calls included per month and a charge of $0.33 per minute beyond that, day or evening. If the agent will use the service for daytime calls only, how many minutes per month should she stay below so that Plan A is the least cost alternative? Your Answer:

Explanation / Answer

Plan A:

Call rate = $0.51 per minute during daytime if she uses daytime calls, then total numbers of minutes she can speak consider $48 bill payment = 48 / 0.51 = 94.117 minutes

Considering she speaks 94 minutes in a single day during daytime, the total amount to be paid = $0.51 x 94 = $47.94

Therefore, 94 minutes per month she should tay below so that Plan A is the least cost alternative

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