(Use graph above) 16. Refer to the day-calls cost lines graph above (or the grap
ID: 363957 • Letter: #
Question
(Use graph above)
16. Refer to the day-calls cost lines graph above (or the graph on your assignment if the graph above is not clear) for the three plans. Write the total cost equation for computing the monthly charge for Plan A __________________
17. Refer to the day-calls cost lines graph above (or the graph on your assignment if the graph above is not clear) for the three plans. What is the slope of Plan C equal to after 120 minutes?
a)$0.50
b)$0.30
c)$0.65
d)$0.15
e)None of the above
18. If the agent will use the service for daytime calls only, is there any plan that is never optimal?
a)No – each plan will be optimal at some level of usage
b)Yes – Plan A is never optimal
c)Yes – Plan B is never optimal
d)Yes – Plan C is never optimal
19. If the agent will be making day calls mostly and is expecting an average usage of 250 minutes per month, which plan should (s)he get?
a)Plan A
b)Plan B
d)Plan C
e)All plans are best over some levels of day calls (minutes).
20. Compute the monthly cost for Plan B if the agent makes the following calls in a given month: 100 evening minutes, 100 day minutes _______________
21. Compute the monthly cost for Plan C if the agent makes the following calls in a given month: 100 evening minutes, 100 day minutes _______________
$600.00 $500.00 Plan A Plan B _Plan C $400.00 $300.00 $200.00 $100.00 $0.00 0 50 100 150 200 250 300 350 400 450 500 550 600 650 700Explanation / Answer
Answer 16
Total cost equation = $25 + 0.50 X + 0.20 y
Where X = minutes of daytime call
Y = minutes of evening time calls
Answer 17
Option b
Slope is $0.30 per minute of calls
Because it is given in a question that rate remains steady at $0.30 per minute inspite of a day or evening calls
Answer 18
Option C : and we will be never optimal
Because at any level before 120 minutes plan is preferable due to low rates and after the level of 120 minutes we choose either plan a or plants see as per the low rates. But in any case nowhere Plan B is preferred.
Example
At 150 minutes
Plan A = $100
Plan B =$122.5
Plan C =$109
At 200 minutes
Plan A = $125
Plan B = $155
Plan C= $ 124
Thus we disregard plan B in both the levels
Answer 19
Plan A= 25+125 =$150
Plan B = 25 + 162.5 = $187.5
Plan C = 100 +(150×0.03) = $145
Therefore option D is correct
That is plan C because its cost is lowest from all the plans
Answer 20
Plan B = 25 + (100*0.65) + (100*0.15)
= $105
Answer 21
Plan C =100+ [(200-120)*0.3]
=$ 124
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