Question

A cable company offers two movie plans. Plan A costs $120 per month plus $5 per movie. Plan B costs $150 per month for unlimited movies. How many movies can Neil rent for Plan B to be the better buy? Select the correct option(s) from the following:

A. Neil should choose Plan B if he wants to rent more than X movies.
B. Neil should choose Plan A if he wants to rent more than Y movies.

Answer 1

Neil should choose Plan B for a better value if he intends to rent more than 6 movies per month as this is the break-even point where the cost of both plans is equal.

Step-by-step explanation:

To determine how many movies Neil needs to rent for Plan B to be a better buy than Plan A, we need to establish a break-even point where the cost of both plans will be equal. Let's represent the number of movies Neil wants to rent as X. For Plan A, the cost would be $120 + $5X, and for Plan B, the cost is a flat $150 per month. To find the break-even point, we set the costs equal to each other:

120 + 5X = 150

Subtracting 120 from both sides gives us:

5X = 30

Dividing both sides by 5 gives us:

X = 6

Therefore, Neil would need to rent more than 6 movies per month for Plan B to be the better option. So Option A is correct: Neil should choose Plan B if he wants to rent more than 6 movies.