Problem

Cell Phone Service This month, as you were paying your bills, you noticed that your cell p...

Cell Phone Service This month, as you were paying your bills, you noticed that your cell phone service contract had expired. Since cell phone numbers are now portable, you decided to investigate different companies. Since you regularly travel outside your local calling area, you decide to look only at plans with no roaming charges. Here are your findings:

 

Anytime Minutes Included

Charge for Each Extra Minute

Mobile-to-Mobile Minutes

National Long Distance

Nights and Weekends

Company A:

 

 

 

 

 

Plan A1: $39.99

450 with rollover

$0.45

Unlimited

Included

5000 (9 pm–6 am)

Plan A2: $59.99

900 with rollover

$0.40

Unlimited

Included

Unlimited (9 pm–6 am)

Company B:

 

 

 

 

 

Plan B1: $39.99

600

$0.40

None

Included

Unlimited (9 pm–7 am)

Plan B2: $49.99

1000

$0.40

None

Included

Unlimited (9 pm–7 am)

Company C:

 

 

 

 

 

Plan C1: $59.99

550

551–1050, $5 for each 50 minutes; Above 1050, $0.10 each minute

Unlimited

Included

Unlimited (7 pm–7 am)

Plan C2: $69.99

800

801–1300, $5 for each 50 minutes; Above 1300, $0.10 each minute

Unlimited

Included

Unlimited (7 pm–7 am)

Source: Based on rates from the Web sites of the companies Cingular, T Mobile, and Sprint PCS for the zip code 76201 on May 20, 2006. (www.cingular.com, www.t-mobile.com, www.sprint.pcs.com)

Each plan requires a 2-year contract.

If you expect to use 400 anytime, 200 mobile-to-mobile, and 4500 night and weekend minutes per month, which plan provides the best deal? If you expect to use 400 anytime, 200 mobile-to-mobile, and 5500 night and weekend minutes per month, which plan provides the best deal? If you expect to use 500 anytime, and 1000 mobile-to-mobile, and 2000 night and weekend minutes per month, which plan provides the best deal?

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