NZ Level 8 (NZC) Level 3 (NCEA) [In development]

Linear Modelling - Break Even Analysis

Consider the following phone plans:

GO SMALL plan: This plan has a $\$20$$20 monthly base charge and charges $90$90 cents per minute for all calls.

GO MEDIUM plan: This plan has a $\$26$$26 monthly base charge and then charges $70$70 cents per minute for all calls.

a

Complete the following table of values for various total monthly call times for the two plans:

Call time (in minutes) | Total cost for GO SMALL plan | Total cost for GO MEDIUM plan |
---|---|---|

$20$20 | $\editable{}$ | $\editable{}$ |

$30$30 | $\editable{}$ | $\editable{}$ |

$40$40 | $\editable{}$ | $\editable{}$ |

$50$50 | $\editable{}$ | $\editable{}$ |

b

Sketch the graph of the two plans.

Loading Graph...

c

Using the graphs, determine how many minutes of calls would need to be made so that the monthly bill costs the same on both plans.

Easy

Approx 7 minutes

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Use curve fitting, log modelling, and linear programming techniques

Apply linear programming methods in solving problems