Fellas I am also confused with the term MAXIMUM here.
In case of Regular calls:
Total Cost= 3*1.6+57*.8=50.4
In case of $25 fee:
Total Cost=3*1.6*.6+57*.8*.6=30.24 or 50.4*.6=30.24
Now if we add $25 fee this cost becomes 55.24
Now where is he saving.
Please tell me where i am going wrong....
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Source: Beat The GMAT — Problem Solving |
Dear Asbestos,
The case you have given shows that the 25$ plan is expensive for him. He would have been better off not taking the 25$ plan. In order to get the best out of plan he should use it in such a way that the discount of 40% is more than the flat payment of 25$. This discount is .64$ for calls less than 3 min and only .32$ for any extra min. Thus the max saving will happen if only calls less than 3 mins are made. If calls less than 3 min are made everytime,than the total expense would have been
=1.6*60=96
now suppose he pays 25$ and takes the discount
cost of calls made=1.6*60*.6=57.6
total money to be paid=57.6+25=82.6
saving made=96-82.6=13.4
I hope i am clear
This problem is a constant dilemma that a mobile user faces while taking a special plan
The case you have given shows that the 25$ plan is expensive for him. He would have been better off not taking the 25$ plan. In order to get the best out of plan he should use it in such a way that the discount of 40% is more than the flat payment of 25$. This discount is .64$ for calls less than 3 min and only .32$ for any extra min. Thus the max saving will happen if only calls less than 3 mins are made. If calls less than 3 min are made everytime,than the total expense would have been
=1.6*60=96
now suppose he pays 25$ and takes the discount
cost of calls made=1.6*60*.6=57.6
total money to be paid=57.6+25=82.6
saving made=96-82.6=13.4
I hope i am clear
This problem is a constant dilemma that a mobile user faces while taking a special plan
shouldn't the bold part be 1.6 * 3 + .8 * 57 +25 = 75.4 to calculate the minimum amount he needs to pay while using the 25$ scheme..rah_pandey wrote:Dear Asbestos,
The case you have given shows that the 25$ plan is expensive for him. He would have been better off not taking the 25$ plan. In order to get the best out of plan he should use it in such a way that the discount of 40% is more than the flat payment of 25$. This discount is .64$ for calls less than 3 min and only .32$ for any extra min. Thus the max saving will happen if only calls less than 3 mins are made. If calls less than 3 min are made everytime,than the total expense would have been
=1.6*60=96
now suppose he pays 25$ and takes the discount
cost of calls made=1.6*60*.6=57.6
total money to be paid=57.6+25=82.6
saving made=96-82.6=13.4
I hope i am clear
This problem is a constant dilemma that a mobile user faces while taking a special plan
and thus the profit will be maximized.. ?
shouldn't the bold part be 1.6 * 3 + .8 * 57 +25 = 75.4 to calculate the minimum amount he needs to pay while using the 25$ scheme..
and thus the profit will be maximized.. ?
The calculation shown by you are without discounts. why? there is a 40% discount on cost of call while availing 25$ scheme.
Whatever talk plan you choose you need to calculate costs pre discount and post discount on it to calculate the actual profit.
like if you chose 3min+57 min then both pre discount and post discount costs have to be calculated on this usage and not on 3min+57 and 60 min
Please note that it is not necessary that a subscriber will always gain after taking such a scheme. It all depends on the usage pattern
