"lan A has a fixed cost of $10 and a variable cost of $0.05 per minute $0.10 per MB. Plan B has no fixed cost and a variable cost of $0.25 per minute $0.20 per MB. What is the point of indifference between the two plans

The indifference point is 50 minutes.

Explanation:

Giving the following information:

A has a fixed cost of $10 and a variable cost of $0.05 per minute $0.10 per MB. Plan B has no fixed cost and a variable cost of $0.25 per minute $0.20 per MB.

First, we need to formulate the cost equation for each of the plans.

Plan A:

Total cost= 10 + 0.05*x

Plan B:

Total cost= 0.25*x

X= minutes

To determine the indifference point, we need to equal both formulas:

10 + 0.05x= 0.25x

10/0.20= x

50=x

The indifference point is 50 minutes.

the

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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