Break even on cell phone plans

  • Thread starter Thread starter Ronb107
  • Start date Start date
  • Tags Tags
    Break Cell even
Click For Summary
SUMMARY

The discussion focuses on determining the break-even point between two cellular phone plans: Plan 1 with a monthly fee of $50 for 500 minutes and an additional charge of $0.35 per minute thereafter, and Plan 2 with a monthly fee of $75 for 1000 minutes and an additional charge of $0.40 per minute thereafter. The break-even point occurs at 4000 minutes of usage, where the total costs of both plans become equal. Participants suggest graphing the cost functions to visualize the intersection point for better understanding.

PREREQUISITES
  • Understanding of linear equations and functions
  • Basic knowledge of graphing techniques
  • Familiarity with cost analysis in service plans
  • Ability to manipulate algebraic expressions
NEXT STEPS
  • Graph the cost functions of both cellular plans to visualize the break-even point
  • Explore the impact of varying usage on total costs for both plans
  • Learn about piecewise functions to better understand tiered pricing structures
  • Investigate alternative cellular plans and their cost structures for comparison
USEFUL FOR

Consumers evaluating cellular phone plans, financial analysts assessing service costs, and students learning about linear functions and cost analysis.

Ronb107
Messages
2
Reaction score
0

Homework Statement


A customer is choosing between two cellular phone plans.
One plan has a monthly fee of $50 for an allowance of
500 minutes per month. If the customer uses more than
500 minutes, the charge is $0.35 per additional minute used.
The other plan has a monthly fee of $75 for an allowance of
1000 minutes per month. If the customer uses more than
1000 minutes, the charge is $0.40 per additional minute. After
how many minutes used are the monthly costs of the plans
equal?



Homework Equations


This is how I set it up...
Plan 1: (<=500 min) x= $50; (>500 min) x= $50 + $0.35m
Plan 2: (<=1000 min) x= $75; (>1000 min) x= $75 + 0.40m




The Attempt at a Solution


The answer is 4000 minutes, but I don't know how to proceed. Any help is appreciated.
 
Physics news on Phys.org
Ronb107 said:

Homework Statement


A customer is choosing between two cellular phone plans.
One plan has a monthly fee of $50 for an allowance of
500 minutes per month. If the customer uses more than
500 minutes, the charge is $0.35 per additional minute used.
The other plan has a monthly fee of $75 for an allowance of
1000 minutes per month. If the customer uses more than
1000 minutes, the charge is $0.40 per additional minute. After
how many minutes used are the monthly costs of the plans
equal?



Homework Equations


This is how I set it up...
Plan 1: (<=500 min) x= $50; (>500 min) x= $50 + $0.35m
Plan 2: (<=1000 min) x= $75; (>1000 min) x= $75 + 0.40m
A better choice would be C, for cost, and then either x or m for the number of minutes.
Ronb107 said:

The Attempt at a Solution


The answer is 4000 minutes, but I don't know how to proceed. Any help is appreciated.
For starters, try graphing both cost functions on the same axis system. For plan 1, the graph is a horizontal line 50 units up for m in the interval [0, 500]. Then the graph heads off at a slope of .35.

See if you can figure out what the graph for plan 2 looks like, as well.
 

Similar threads

  • · Replies 11 ·
Replies
11
Views
2K
Replies
1
Views
2K
Replies
4
Views
2K
  • · Replies 6 ·
Replies
6
Views
2K
  • · Replies 4 ·
Replies
4
Views
3K
Replies
5
Views
7K
  • · Replies 3 ·
Replies
3
Views
3K
  • · Replies 14 ·
Replies
14
Views
5K
Replies
2
Views
7K
  • · Replies 69 ·
3
Replies
69
Views
10K