Kim Davis has decided to purchase a cellular phone, but she is unsure about which rate plan to select. The "regular" plan charges a fixed fee of$55 per month for 1,000 minutes of airtime plus $0.33 per minute for any time over 1,000 minutes. The "executive" plan charges a fixed fee of $100per month for 1,200 minutes of airtime plus $0.25 per minute over 1,200 minutes. At what level of use would Kim be indifferent between the two plans?
Kim Davis has decided to purchase a cellular phone, but she is unsure about which rate plan to select. The "regular" plan charges a fixed fee of$55 per month for 1,000 minutes of airtime plus $0.33 per minute for any time over 1,000 minutes. The "executive" plan charges a fixed fee of $100per month for 1,200 minutes of airtime plus $0.25 per minute over 1,200 minutes. At what level of use would Kim be indifferent between the two plans?
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 12EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a...
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Kim Davis has decided to purchase a cellular phone, but she is unsure about which rate plan to select. The "regular" plan charges a fixed fee of
$55 per month for 1,000 minutes of airtime plus $0.33 per minute for any time over 1,000 minutes. The "executive" plan charges a fixed fee of $100
per month for 1,200 minutes of airtime plus $0.25 per minute over 1,200 minutes. At what level of use would Kim be indifferent between the two plans?
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