4.- A real estate agent is considering changing his cell phone plan. Thereare three plans to choose from, all include a $20 per month charge. PlanA costs $0.45 per minute for calls in the morning and $0.20 per minute forcalls in the afternoon. Plan B costs $0.55 per minute for calls in themorning and $0.15 per minute for calls in the afternoon. Plan C has aconstant cost of $80 with 200 minutes of calls per month and a charge of$0.40 per minute after 200 minutes regardless of whether it is in themorning or afternoon.a) Determine the total charge for each plan for 120 minutes in themorning and 40 minutes in the afternoon in one month.b) If the agent uses the call service only in the morning, what is therange of minutes in which each plan is optimal? c) Assuming that the agent uses the calls in the morning and in theafternoon, at what point will it be indifferent to use plan A and planB?

Given data is Fixed cost = $20 per month Morning call cost under plan A = $0.45 per min Afternoon…

Answered: 4.- A real estate agent is considering…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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