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Tatiana [17]
3 years ago
10

A phone company offers to monthly plans. Plan a cost $23 plus an additional $.08 for each minute of calls. Plan B cost $19 an ad

ditional $.12 for each minute of calls.
Mathematics
1 answer:
Anettt [7]3 years ago
5 0

Answer:

The indifference point is 100 minutes.

Step-by-step explanation:

Giving the following information:

Plan a cost $23 plus an additional $.08 for each minute of calls.

Plan B cost $19 an additional $.12 for each minute of calls.

<u>First, we need to establish the total cost formula for each plan:</u>

Plan A= 23 + 0.08*x

Plan B= 19 + 0.12*x

x= number of minutes

<u>Now, to calculate the indifference point, we equal both formulas and isolate x:</u>

23 + 0.08x = 19 + 0.12x

4 = 0.04x

100= x

The indifference point is 100 minutes.

<u>Prove:</u>

Plan A= 23 + 0.08*100= $31

Plan B= 19 + 0.12*100= $31

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