Problema Solution
you are in the market for a new phone and data plan. you have your choice of two data plans. plan a is $60 per month and fifty cents per megabyte thereafter. the second plan is a flat rate of $115 per month. define x. show and interpret a breakeven analysis.
Answer provided by our tutors
Let x be the number of megabytes of data used
Cost of the first plan = 60 + 0.50x
Cost of second plan = 115
Break even point occurs when
60+0.5x = 115 => x = (115-60)/0.5= 55/0.5 = 110 MB
So if the monthly usage is more than 110 megabytes it is better to choose second plane and if it is less than 110 megabytes it is better to choose the first plan.