A cell phone company offers two different plans. Plan A costs $80 per month for unlimited talk and text. Plan B costs $0.20 per minute plus $0.10 per text message sent. You need to purchase a plan for your teenage sister. Your sister currently uses 1,700 minutes and sends 1,600 texts each month. 1. What is your sister’s total cost under each of the two plans? 2. Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. What is your sister’s total cost under each of the two plans?

A cell phone company offers two different plans. Plan A costs $80 per month for unlimited talk and text. Plan B costs $0.20 per minute plus $0.10 per text message sent. You need to purchase a plan for your teenage sister. Your sister currently uses 1,700 minutes and sends 1,600 texts each month. 1. What is your sister’s total cost under each of the two plans? 2. Suppose your sister doubles her monthly usage to 3,400 minutes and sends 3,200 texts. What is your sister’s total cost under each of the two plans?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 16E

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