Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
Bartleby Related Questions Icon

Related questions

Question
Point of indifference
percent daytime minutes
expand button
Transcribed Image Text:Point of indifference percent daytime minutes
A real estate agent is considering changing her land line
phone plan. There are three plans to choose from, all of
which involve a monthly service charge of $20. Plan A has
a cost of $.38 a minute for daytime calls and $.17 a minute
for evening calls. Plan B has a charge of $.47 a minute for
daytime calls and $.14 a minute for evening calls. Plan C
has a flat rate of $75 with 275 minutes of calls allowed per
month and a charge of $.36 per minute beyond that, day
or evening.
a. Determine the total charge under each plan for this
case: 120 minutes of day calls and 40 minutes of evening
calls in a month. (Do not round intermediate calculations.
Round your answer to 2 decimal places.)
Answer is not complete.
Cost for Plan A
Cost for Plan B
Cost for Plan C
$
Return to question
63.40
b. If the agent will only use the service for daytime calls,
over what range of call minutes will each plan be optimal?
(Round each answer to the nearest whole number.
Include the indifference point itself in each answer.)
Plan A is optimal from zero to
minutes. Plan C is optimal from
c. Suppose that the agent expects both daytime and
evening calls. At what point (i.e., percentage of total call
minutes used for daytime calls) would she be indifferent
between plans A and B? (Do not round intermediate
calculations. Enter your answer as a percentage
rounded to 2 decimal places. Omit the "%" sign in your
response.)
expand button
Transcribed Image Text:A real estate agent is considering changing her land line phone plan. There are three plans to choose from, all of which involve a monthly service charge of $20. Plan A has a cost of $.38 a minute for daytime calls and $.17 a minute for evening calls. Plan B has a charge of $.47 a minute for daytime calls and $.14 a minute for evening calls. Plan C has a flat rate of $75 with 275 minutes of calls allowed per month and a charge of $.36 per minute beyond that, day or evening. a. Determine the total charge under each plan for this case: 120 minutes of day calls and 40 minutes of evening calls in a month. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Answer is not complete. Cost for Plan A Cost for Plan B Cost for Plan C $ Return to question 63.40 b. If the agent will only use the service for daytime calls, over what range of call minutes will each plan be optimal? (Round each answer to the nearest whole number. Include the indifference point itself in each answer.) Plan A is optimal from zero to minutes. Plan C is optimal from c. Suppose that the agent expects both daytime and evening calls. At what point (i.e., percentage of total call minutes used for daytime calls) would she be indifferent between plans A and B? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places. Omit the "%" sign in your response.)
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Similar questions
Recommended textbooks for you
Text book image
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Text book image
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Text book image
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Text book image
Business in Action
Operations Management
ISBN:9780135198100
Author:BOVEE
Publisher:PEARSON CO
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Text book image
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.