1. John has 2 options to use gym facilities in his community.
Plan A:
$3 hourly rate.
Plan B:
$2 hourly rate plus $2 entrance fee per visit during off peak hours.
$4 hourly rate with discount $1 per visit during peak hours.
If John chooses plan A, how many hours he has to use the gym facilities per trip,
a. during off peak hours
b. during peak hours
in order to make his payment cost effective (Payment to be lower than plan B). Give a
conclusion for questions above.