The cell phone company offers the following plans.
Plan A: 450 minutes: costs 49.99: Overage $0.10 per minute
Plan B: 800 Minutes: costs $62.99: Overage $0.25 per minute
Which Plan is that best if you do NOT go over your minutes?
What would be the better plan if you went over by 200 minutes?
Thank you for the opportunity to help you with your question!
If you do NOT go over your minutes then:
Plan A = 49.99/450 = 11.1 cents per minute
Plan B = 62.99/800 = 7.9 cents per minute
So Plan B is the better plan.
If you went over by 200 minutes then:
Plan A = 49.99 + 200(0.1) = 49.99 + 20 = 69.99
69.99/650 = 10.8 cents per minute
Plan B = 62.99 + 200(.25) = 62.99 + 50 = 112.99
112.99/1000 = 11.3 cents per minute
So, Plan A would be the better plan.
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