Bill, the controller of CRV Corporation, is considering two new phone systems for his staff. System 1 costs $0.80 per minute, while System 2 charges $10 per month plus $0.50 per minute.
a)If Bill's staff collectively plan to use the new phone system 20 hours per month, which alternative is preferable from a financial perspective?
b)What is the cost of the alternative you identified in Part A?
c)How many minutes would the staff have to use the phones for Bill to be indifferent between the two alternatives?

Question

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The Answer of Bill, the controller of CRV Corporation, is considering two new phone systems for his staff. System 1 costs $0.80 per minute, while System 2 charges $10 per month plus $0.50 per minute.
a)If Bill's staff collectively plan to use the new phone system 20 hours per month, which alternative is preferable from a financial perspective?
b)What is the cost of the alternative you identified in Part A?
c)How many minutes would the staff have to use the phones for Bill to be indifferent between the two alternatives?

Bill, the Controller of CRV Corporation, Is Considering Two New