August 2004
Intermediate to advanced
656 pages
15h 28m
English
Break-even analysis is simplest when there are only two alternatives. Consider an ISP that offers two different pricing plans for connect time. Suppose that Plan A is the same as given above, a fixed monthly rate of $10 plus $2 per hour of connect time:
Cost under Plan A = $10.00 + $2.00 * T
Another plan, Plan B, is also available. This plan has a higher fixed monthly rate, say $25, but has a lower per-hour charge, say, $1.
Cost under Plan B = $25.00 + $1.00 * T
If you didn't plan on using the ISP very much, for example only an hour or two a month, then Plan A is better. At 2 hours per month, Plan A costs $14, whereas Plan B costs $27. If you intend to use much more connect time each month, Plan B is ...
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