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Real-Life Math

Your client is looking for ways to reduce its long-distance calls. Your job is to shop around the major long-distance carriers for the best deal. Telecommunications managers are expert shoppers. They have to find the best product at the best price for their clients.

Let's say Company A is offering 10 cents a minute on all your long-distance charges with payment of a $5 service charge every month. Company B is offering 12 cents a minute with no service charge.

If your client averages 1,000 minutes a month on long-distance calls, which company would you recommend? Suppose your client averaged 200 minutes a month. Would your advice be the same?

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