Alma has decided to purchase a cell phone with Internet
access and must choose a rate plan. The “occasional-user”
plan is $0.50/minute, regardless of how many minutes of
air time are used. The “frequent-user” plan charges a flat
rate of $55/month for 70 minutes of air time plus
$0.33/minute for any time over 70 minutes. The “executive” plan charges a flat fee of $75 per month for 100
minutes of air time plus $0.25/minute over 100 minutes. In
the interest of simplicity, Alma has decided to go with the
occasional-user plan to start with and then upgrade as she
sees fit at a later date.
a. How much air time per month would Alma need to
use before she upgrades from the occasional-user plan
to the frequent-user plan?
b. At what usage rate should she switch from the
frequent-user plan to the executive plan?

Respuesta :

a) Before Alma would upgrade from the occasional-user plan to the frequent-user plan, she needs to use 110 minutes.

b) The usage rate at which Alma should switch from the frequent-user plan to the Executive Plan is when she starts using up to 250 (70 + 180) minutes because at its cost, she could make 258 minutes of executive-plan calls.

What is the usage rate?

The usage rate is the ratio or percentage at which a service is charged relative to the activity base.

There are many usage rates, especially concerning telephone charges.

Data and Calculations:

                              Plan Charges

Occasional User   $0.50/minute        

Frequent User      $55/month for 70 minutes of air time plus

                              $0.33/minute for any time over 70 minutes

Executive Plan      Flat fee of $75 per month for 100

                              minutes of air time plus $0.25/minute over 100

                              minutes

At 250 minutes, the total cost for the frequent user will be = $114.40 ($55 + $0.33 x (250 - 70).

At this total cost, she can make more Executive-plan calls = 258 minutes calls {100 + ($114.40 - $75)/$0.25}.

Thus, user rates are like percentages, which show the ratios of variables.

Learn more about percentages at https://brainly.com/question/24877689

   

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