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Accounting
1.You are on a tight budget and need to decide among the following 3 texting plans:
Plan A: Pay $0.10 per textPlan 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.
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