Question

L-Co (Similar to) Bridget Kanen is getting ready to open a small restaurant. She is on a ight budget and must choose between the following long-distanoe phone plans Plan A: Plan B: Plan C: Pay 8 cents per minute of long-distance calling. Pay a tuod monthly fee of S13 for up to 280 Ong isaron minutes and Sorts per minute tereafter (Hshe uses fewer tun 280 minutes nary morn she pays $13 trto morn). fower than 400 minutos, she sill pays $21 for the mordh) Pay a fixed monthly fee of $21 for up to 460 long-distance minutes and 4 cents per minute thereafter if she un Read the requirements the graphs to the plans. complete the following table, calculating the total oosts for each plan at eachofthe diferent minute lesisPound tote nearest cet) Plan 100 minutes 280 minutes 480 minutes

Answer 1

A	B	C	D	E	F	G	H	I	J	K
2
3		Total cost will be fixed cost plus variable cost.
4			Fixed Cost	Variable Cost per minute	Minutes covered under fixed cost
5		Plan A	$0.00	$0.08	0
6		Plan B	$13.00	$0.05	280
7		Plan C	$21.00	$0.04	460
8
9		Total cost	=Fixed Cost + Variable cost per minute*Max(Total minutes - Minutes covered under fixed cost, 0)
10
11		Total costs can be calculated as follows:
12			Minutes of call
13		Plan	100	280	480
14		A	$8.00	$22.40	$38.40	=$D$5+$E$5*MAX(F13-$F$5,0)
15		B	$13.00	$13.00	$23.00	=$D$6+$E$6*MAX(F13-$F$6,0)
16		C	$21.00	$21.00	$21.80	=$D$7+$E$7*MAX(F13-$F$7,0)
17