Examples of price charges per minute by AT&T for long-distance telephone calls within the United States at different times of the day and week are as follows:   Washington, DC to Philadelphia Philadelphia D.C. to St. Louis Washington, DC to Los Angeles Peak period (8am –  5pm)        Monday - Friday $0.21     $0.22 $0.24         Evenings (5pm -11pm. Monday –Friday)   $0.13 $0.13 $0.14 Nights & weekends $0.11 $0.11 $0.12           a. Are there differences in incremental or outlay costs per minute for AT&T for telephone calls made during peak hours compared to telephone calls made at other times of the day? b. Why do you think AT&T charges different prices per minute for telephone calls made during peak hours compared to telephone calls made at other times of the day?

Financial And Managerial Accounting
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ISBN:9781337902663
Author:WARREN, Carl S.
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Chapter25: Differential Analysis And Product Pricing
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Examples of price charges per minute by AT&T for long-distance telephone calls within the United States at different times of the day and week are as follows:

 

Washington, DC to Philadelphia

Philadelphia D.C. to St. Louis

Washington, DC to Los Angeles

Peak period (8am –  5pm)

 

 

 

 Monday - Friday

$0.21

 

 

$0.22

$0.24

 

 

 

 

Evenings (5pm -11pm. Monday –Friday)

 

$0.13

$0.13

$0.14

Nights & weekends

$0.11

$0.11

$0.12

 

 

 

 

 

a. Are there differences in incremental or outlay costs per minute for AT&T for telephone calls made during peak hours compared to telephone calls made at other times of the day?

b. Why do you think AT&T charges different prices per minute for telephone calls made during peak hours compared to telephone calls made at other times of the day? 

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