Question
Jana Morgan is about to sign up for cellular telephone service. She is primarily interested in the safety aspect of the phone; she wants to
Jana Morgan is about to sign up for cellular telephone service. She is primarily interested in the safety aspect of the phone; she wants to have one available for emergencies. She does not want to use it as her primary phone. Jana has narrowed her options down to two plans: Both plans are subject to a $25 activation fee and a $120 cancellation fee if the service is cancelled before 1 year. Jana's brother will give her a cell phone that he no longer needs. It is not the latest version (and is not Internet capable) but will work well with both plans. Required: 1. Classify the charges associated with the cellular phone service as (a) committed resources or (b) flexible resources. Monthly fee Activation fee Cancellation fee (if triggered by contract cancellation prior to 1 year) Airtime Long distance Regional roaming National roaming 2. Conceptual Connection: Assume that Jana will use, on average, 45 minutes per month in local calling. For each plan, split her minute allotment into used and unused capacity. Plan 1 used minutes minutes Plan 1 unused capacity minutes Plan 2 used minutes minutes Plan 2 unused capacity minutes Which plan will be most cost effective? Why? The input in the box below will not be graded, but may be reviewed and considered by your instructor. 3. Conceptual Connection: Assume that Jana loves her cell phone and ends up talking frequently with friends while traveling within her region. On average, she uses 60 local minutes a month and 30 regional minutes. For each plan, split her minute allotment into used and unused capacity. If more minutes are used than are available, enter the unused capacity as a negative number. Plan 1 used minutes minutes Plan 1 unused capacity minutes Plan 2 used minutes minutes Plan 2 unused capacity minutes Which plan will be most cost effective? Why? The input in the box below will not be graded, but may be reviewed and considered by your instructor. 4. Conceptual Connection: Analyze your own cellular phone plan by comparing it with other possible options. The input in the box below will not be graded, but may be reviewed and considered by your instructor.
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