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.
To determine how many minutes of phone calls in a month make XYZ phone company the better deal, we need to compare the total cost of both companies for a given number of minutes.
Let's assume the number of minutes of phone calls in a month is represented by the variable 'x'.
For ABC phone company:
Cost per month = $16
Cost per minute = 8¢ = $0.08
Total cost for ABC = Cost per month + (Cost per minute * Number of minutes)
= $16 + ($0.08 * x)
= $16 + 0.08x
For XYZ phone company:
Cost per month = $10
Cost per minute = 11¢ = $0.11
Total cost for XYZ = Cost per month + (Cost per minute * Number of minutes)
= $10 + ($0.11 * x)
= $10 + 0.11x
To find the point where XYZ phone company becomes the better deal, we need to find when the total cost for XYZ is less than the total cost for ABC, i.e., we need to solve the inequality:
$10 + 0.11x < $16 + 0.08x
Simplifying the inequality:
$0.11x - $0.08x < $16 - $10
$0.03x < $6
To solve this inequality, divide both sides by 0.03:
x < $6 / $0.03
x < 200
So, if the number of minutes of phone calls in a month is less than 200, XYZ phone company is the better deal.