Posted by Vilma on .
ABC phone company charges $16 per month plus 8¢ per minute of phone calls. XYZ phone company charges
$10 per month plus 11¢ per minute of phone calls. How many minutes of phone calls in a month make XYZ
phone company the better deal?
Difference in fixed cost=$16-$11=$5
Difference in per minute call = $0.11-0.08=$0.03
Difference in minutes = $5/0.03=166.67 min.
So up to 166 minutes, XYZ offers a better deal.