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Bayside Insurance offers two health plans. Under plan A, Giselle would pay the first $150 of her medical bills, plus 40% of the rest. Under plan B, Giselle would pay the first $250, but only 35% of the rest. For what amount of medical bills will plan B save Giselle money? Assume she has over $250 in bills.

  • math -

    Let X be the amount of medical bills. Plan A cost:
    C(A) = 150 + 0.40(X-150)
    Plan B cost:
    C(B) = 250 + 0.35(X-250)
    Set C(A) = C(B) and solve for the breakeven value of X.
    C(A)= 0.40(X-150)
    = C(B) = 250 + 0.35(X-250)

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