Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with the EXCEL sheet. Construct an Excel spreadsheet model with graphs to assist John with the following questions: 1. If John expects

Please help me with the EXCEL sheet. Construct an Excel spreadsheet model with graphs to assist John with the following questions:

1. If John expects his sales agents to use the phone for 50 hours per month, which plan should he select?

2. Perform an analysis based on the idea that John believes his agents' average use will be 50hours per month but knows that they will never use less than 40 hours or more than 60 hours per month.

3. How does the decision change if the agents' usage habits change and they now use the phone on average 65 hours a month, but will never use more than 85 hours or less than 50hours a month?

Background

John Woo runs a small advertising firm. He employs 10 sales agents who need individual cellular phone service at all times. He is trying to decide which cell phone package to purchase.

John's Concerns

John has noticed that some plans tend to "low-ball" on the monthly fee but then stick the customer with big per minute charges when the free minutes are used up. John was wary of plans like this because if his employees used a lot of minutes the per minute fees swamped any saving obtained in the low monthly fees. On the other hand, some plans "low-balled" the "per minute" charges but stuck users with ahigh monthly fee. These plans appealed to customers who knew they would use large amounts of minutes, but John felt uncertain about if the higher monthly fees were worth the lower "per minute" charges.

Plan Options

He has narrowed his options down to two plans; however, he is uncertain about which plan to select. Each employee uses about the same amount of airtime a month. John wants a plan that meets his current needs but will also be advantageous as his needs grow. The "regular" plan charges a fixed fee of $55 per month for 2000 minutes of airtime plus $0.15per minute for any time over 2000 minutes. The "executive" plan charges a fixed fee of $75per month for 1000 minutes of airtime plus $0.09 per minute over 1000 minutes.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing the Law The Legal Aspects of Doing Business

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

4th edition

133151565, 978-0132164429

More Books

Students also viewed these Law questions

Question

Outline Aristotles positions on memory, sensing, and motivation.

Answered: 1 week ago