You want to compare the costs of each option over several months in order to make an appropriate decision. In order to decide which plan is a better deal, you do the following calculations:

At 6 months the Satellite is a better deal because the plans will have cost you…
Satellite: 48 + 38(6) = $276
DVD: 160 + 6(8)(3.00) = $304

At 12 months the DVD is a better deal because the plans will have cost you…
Satellite: 48 + 38(12) = $504
DVD: 160 + 12(8)(3.00) = $448

What is the “break even” point? Meaning… at how many months and at what cost will the two options be equal

Question

You want to compare the costs of each option over several months in order to make an appropriate decision.  In order to decide which plan is a better deal, you do the following calculations:

At 6 months the Satellite is a better deal because the plans will have cost you…
	Satellite:  48 + 38(6) = $276
	DVD:  160 + 6(8)(3.00) = $304  

At 12 months the DVD is a better deal because the plans will have cost you…
	Satellite:  48 + 38(12) = $504
	DVD:  160 + 12(8)(3.00) = $448  


What is the “break even” point?  Meaning… at how many months and at what cost will the two options be equal