Ana Compo is getting ready to open a small restaurant. She is on a tight budget and must choose between the following long-distance phone plans: Plan A: Pay 8 cents per minute of long-distance calling. Plan B: Pay a fixed monthly fee of $16 for up to 300 long-distance minutes, and 5 cents per minute thereafter (if she uses fewer
Ana Compo is getting ready to open a small restaurant. She is on a tight budget and must choose between the following long-distance phone plans:
Plan A: Pay 8 cents per minute of long-distance calling.
Plan B: Pay a fixed monthly fee of $16 for up to 300 long-distance minutes, and 5 cents per minute thereafter (if she uses fewer than 300 minutes in any month, she still pays $16 for the month).
Plan C: Pay a fixed monthly fee of $20 for up to 480 long-distance minutes and 4 cents per minute thereafter (if she uses fewer than 480 minutes, she still pays $20 for the month).
REQUIRED
Which plan should Compo choose if she expects to make 100 minutes of long-distance calls? 300 minutes? 500 minutes?
Plan A: Pay 8 cents per minute of long-distance calling.
Plan B: Pay a fixed monthly fee of $16 for up to 300 long-distance minutes, and 5 cents per minute thereafter (if she uses fewer than 300 minutes in any month, she still pays $16 for the month).
Plan C: Pay a fixed monthly fee of $20 for up to 480 long-distance minutes and 4 cents per minute thereafter (if she uses fewer than 480 minutes, she still pays $20 for the month).
REQUIRED
Which plan should Compo choose if she expects to make 100 minutes of long-distance calls? 300 minutes? 500 minutes?
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Answer
Plan A: 100 minutes $0.08 = $8.00 300 minutes $0.08 = $24.00 500 minutes $0.08 = $40.00 Plan B…View the full answer
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