A phone company offers two monthly plans. Plan A costs
$11
plus an additional
$0.17
for each minute of calls. Plan B costs
$18
plus an additional
$0.15
for each minute of calls.
so, pick one.
To determine which plan is more cost-effective, we can compare the total cost of each plan based on the number of minutes used.
Let's consider the scenario where a customer has used X minutes of calls.
For Plan A:
Cost of the plan = $11
Cost of additional minutes = X minutes × $0.17
Total cost of Plan A = $11 + X minutes × $0.17
For Plan B:
Cost of the plan = $18
Cost of additional minutes = X minutes × $0.15
Total cost of Plan B = $18 + X minutes × $0.15
To determine which plan is cheaper, we can set up an inequality:
Total cost of Plan A < Total cost of Plan B
$11 + X minutes × $0.17 < $18 + X minutes × $0.15
To find the break-even point where the cost of both plans is equal, we can set up an equation:
$11 + X minutes × $0.17 = $18 + X minutes × $0.15
Solving this equation will give us the number of minutes where both plans have the same cost.
By manipulating the equation, we can isolate X minutes and calculate the break-even point:
X minutes × $0.17 - X minutes × $0.15 = $18 - $11
X minutes × ($0.17 - $0.15) = $18 - $11
X minutes × $0.02 = $7
Dividing both sides by $0.02:
X minutes = $7 / $0.02
X minutes = 350
Therefore, if a customer expects to use fewer than 350 minutes of calls per month, Plan A would be more cost-effective. For 350 minutes or more, Plan B would be the better option.