Problema Solution
You work for a company that sells e-books. The company offers two plans. The subscription plan charges $14.00 per year plus $1.50 per book. The pay-as-you-go plan charges $2.75 for each book. What advice would you give a customer trying to decide between the two plans?
Answer provided by our tutors
Let 'x' represent the number of books sold and let 'y' represent the total number of sales, then two equations describe the two plans:
y=14+1.5x
y=2.75x
click here to solve for the number of books solved for a fixed number of sales
x=11.2
y=30.8
The initial plan will initially costs more because a cost of $14 is required "up front", but once 11.2 books have been sold, both plans generate the same sales, therefore 12 or more books will cost less when each book is sold for 2.75 books.