Question

Alex makes 130 calls which was a total of 1,400 minutes, with a total cost of $322 (company A). Company B offers 8 cents per minute. How much will Alex save with company B?

Answer 1

Alex saves with company B: 15 cents per minute
If he had made 1400 minutes of call with B, total savings = $210

Explanation:

Cost per minute with company A = Total cost/Number of minutes
= $322/1400 = $0.23 which is 23 cents per minute

Company B charges 8 cents per minute

Cost of savings per minute = 23 - 8 = 15 cents per minute = $0.15 ¢/min

If Alex had made the same amount of calls with company B, total savings = $0.15 x 1400 = $210