Assignment: Please complete the below problems and submit your answers in the Week 1Dropbox. See "Syllabus/Due Dates for Assignments & Exams" for due date information.

1. You are on a tight budget and need to decide among the following 3 texting plans:

Plan A: Pay $0.10 per text

Plan B: Pay a fixed monthly fee of $15 for up to 500 texts per month and $0.08 for each text over the 500.

Plan C: Pay a fixed monthly fee of $25 for up to 1,000 texts per month and $0.05 for each text over the 1,000.

Requirements: a. Draw a graph of the total monthly cost of the three plans for different levels of texting.

b. Which plan should you choose if you expect to make:

i. 240 texts per month?

ii. 780 texts per month?

iii. 1,250 texts per month?

2. In 3-4 sentences, define the following terms and give two examples of each:

a. Direct Materials Cost.

b. Direct Manufacturing-Labor Costs.

c. Manufacturing Overhead Costs.

d. Indirect Materials Costs.

e. Prime Costs.

f. Conversion Costs.