# Break even on cell phone plans

• Ronb107
In summary, the conversation discusses two cellular phone plans with different monthly fees and minute allowances. Plan 1 has a monthly fee of $50 for 500 minutes, with a charge of$0.35 per additional minute used. Plan 2 has a monthly fee of $75 for 1000 minutes, with a charge of$0.40 per additional minute used. The question is asking after how many minutes used are the monthly costs of the plans equal. The answer is 4000 minutes. To solve this, one could graph both cost functions and find their point of intersection.
Ronb107

## 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. 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.

## What is break even on cell phone plans?

Break even on cell phone plans refers to the point at which the total cost of a plan equals the total savings or benefits from using that plan. It is the point where the cost of using the plan is equal to the cost of not using the plan.

## How do I calculate break even on a cell phone plan?

To calculate break even on a cell phone plan, you need to compare the cost of the plan to the cost of your previous plan or the cost of not having a plan at all. Look at the monthly cost, upfront fees, and any additional charges for services or devices. Then, estimate how much you will save by switching to the new plan. Once the total cost of the plan is equal to the total savings, you have reached break even.

## What factors should I consider when calculating break even on a cell phone plan?

Some factors to consider when calculating break even on a cell phone plan include the monthly cost, data usage, call and text usage, international calling and roaming fees, and the cost of any new devices or equipment needed for the plan. You should also consider any additional benefits or savings, such as discounts for bundling services or loyalty rewards.

## Is break even on a cell phone plan important?

Yes, calculating break even on a cell phone plan is important because it can help you determine if switching to a new plan will actually save you money in the long run. It can also help you make a more informed decision when comparing different plans and their costs.

## How often should I reassess break even on my cell phone plan?

It is a good idea to reassess break even on your cell phone plan whenever there are changes to your usage, such as an increase or decrease in data or call usage. It is also important to reassess when your plan contract is up for renewal or if new plans with better benefits become available.

Replies
11
Views
2K
Replies
1
Views
1K
Replies
4
Views
2K
Replies
6
Views
1K
Replies
4
Views
2K
Replies
30
Views
4K
Replies
5
Views
7K
Replies
3
Views
2K
Replies
14
Views
3K
Replies
2
Views
6K