Assignment
Please complete the below problems :
1. You are on a tight budget and need to decide among the following 3 texting plans:
Plan A: Pay $0.10 per text
Plan B: Pay a fixed monthly fee of $15 for up to 500 texts per month and $0.08 for each text over the 500.
Plan C: Pay a fixed monthly fee of $25 for up to 1,000 texts per month and $0.05 for each text over the 1,000.
Requirements
a. Draw a graph of the total monthly cost of the three plans for different levels of texting.
b. Which plan should you choose if you expect to make:
i. 240 texts per month?
ii. 780 texts per month?
iii. 1,250 texts per month?
2. In 3-4 sentences, define the following terms and give two examples of each:
a. Direct Materials Cost.
b. Direct Manufacturing-Labor Costs.
c. Manufacturing Overhead Costs.
d. Indirect Materials Costs.
e. Prime Costs.
f. Conversion Costs.