USA: +1 725-224-8795 
Sign in
A real estate agent is considering changing her cell phone plan; there are three to chose from – all involve a monthly fee of $20.25
Plan A charges $0.51 per minute for daytime calls and $0.15 per minute for evening calls.
Plan B charges $0.59 per minute for daytime calls and $0.18 per minute for evening calls.
Plan C has a flat rate of $50 with up to 200 minutes of calls included per month and a charge of $0.34 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?
Expert Answer
If the agent will use the service for daytime Plan B is more costlier then plan A irrespective of total time of calls made because it charges $0.59 per minute for daytime calls.
When we compare plan A and Plan C then plan C has 200 minutes with a flat rate of $50. To make plan A least cost alternative call charges in day time should be below $50.If 9 calls made in a day call charge according to plan A= $50/$0.51= 98 minutes.
