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Purchase of a Cellular Phone Assignment | Assignment Help Services

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September 14th, 2019

Kim Davis has decided to purchase a cellular phone, but she is unsure about which rate plan to select. The “regular plan” charges a fixed fee of $55 per month for 1000 minutes of airtime plus $0.33 per minute for any time over 1,000 minutes.

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The “executive plan” charges a fixed fee of $100 per month for 1,200 minutes of airtime plus $0.25 per minute over 1,200 minutes. A) If Kim expects to use the phone for 21 hours per month, which plan should she select? B) At what level of use would kim be indifferent between the two plans?

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