You are planning to switch your cell phone provider. The Cellular worksheet presents three options for a
Question:
You are planning to switch your cell phone provider. The Cellular worksheet presents three options for a cell phone plan with the new company. You could choose a pay-as-you-go plan, a traditional plan (which includes an allowance for minutes, data, and text and penalties for exceeding these allowances), and an unlimited plan. You want to evaluate which plan will be best for you. You have imported your calls, data usage, and text message usage from the last month with your previous provider into separate worksheets in the workbook (Calls, Data, and Messages, respectively) so that you can how much each plan would cost you based on your usage that month. Complete the following tasks to compare your bill for each plan option.
Task # | Points | Task Description |
---|---|---|
1 | 1 | Complete the "Weekday/Daytime?" column of the "Calls" worksheet. Each cell in this column should display "Yes" if the call for that row was made on a weekday and during the daytime and "No" otherwise (e.g. cell H3 will display "Yes" if cells F3 and G3 are both "Yes" otherwise it will display "No"). Notice that column F is "Yes" if the call was placed on a weekday and column G is "Yes" if the call occured during the daytime. |
2 | 1 | Complete the "Time Charged" column of the "Calls" worksheet. The time charged for each call is the "Minutes" (column E) for that call rounded up to the next minute (e.g. the time charged for a call that lasts 1.01 minutes is 2 minutes). Use the ROUNDUP function with "Minutes" (column E) as the number argument and 0 for the number of digits. |
3 | 1 | Calculate the "Weekday Daytime Minutes" used on the Cellular worksheet. This is this sum of all of the "Time Charged" for calls that occur on Weekdays during the Daytime on the Calls worksheet. |
4 | 1 | Calculate the "Total Minutes Used" on the Cellular worksheet. This is the sum of all of the "Time Charged" on the Calls worksheet. |
5 | 1 | Calculate the "Evening & Weekend Minutes" used on the Cellular worksheet. This is the difference between the "Total Minutes Used" and the "Weekday Daytime Minutes" on the Cellular worksheet. |
6 | 1 | Calculate the "Data Used" on the Cellular worksheet. This is the sum of all of the data used on the Data worksheet. Notice that that data used on the Data worksheet is in kilobytes. Be sure to express the data used on the Cellular worksheet in gigabytes (divide the sum of the data used on the Data worksheet by the number of kilobytes in a gigabyte found in cell F16.) |
7 | 1 | Calculate the "Texts Sent" on the Cellular worksheet. This is the count of the messages listed on the Messages worksheet that are listed as "Text" type of message. |
8 | 1 | Calculate the "Media Texts Sent" on the Cellular worksheet. This is the count of the messages listed on the Messages worksheet that are listed as "Media" type of message. |
9 | 1 | Calculate the "Total Messages Sent" on the Cellular worksheet. This is the sum of the "Text" and "Media" messages sent. |
10 | 2 | Calculate the Minute Charges for option 1. This is the "Total Minutes Used" times the "Minute Charges" for option 1 (notice that all calls are subject to the charges regardless of when the call is placed). |
11 | 2 | Calculate the Data Charges for option 1. This is the "Data Used (gigabytes)" times the "Data Charges per Megabyte" for option 1 (notice that the charges will need to be adjusted since the data used is calculated in gigabytes). |
12 | 3 | Calculate the Text Message(not media messages - these are billed separately and not included in the "free messages" for option 1) charges for option 1. This is calculated as number of text messages sent that exceed the number included in the plan times the text message charges for option 1. |
13 | 2 | Calculate the Media Message charges for option 1. This is calculated as number of media messages sent times the media message charges for option 1. |
14 | 1 | Calculate the Total Charges for option 1. This is the sum of all of the different charges for this option. |
15 | 1 | Calculate the Taxes and Fees for option 1. This is the total charges times the Cellular Tax/Fee Rate. |
16 | 1 | Calculate the Total Bill for option 1. This is the sum of the total charges and the taxes and fees for this option. |
17 | 2 | Calculate the Monthly Cost for option 2. Reference the monthly cost for option 2 in the model inputs. |
18 | 4 | Calculate the Over-minute Charges for option 2. This is the number of minutes used that exceed the minutes included in the plan times the over minute charges. Note: In this plan night and weekend minutes are free. |
19 | 3 | Calculate the Over-data Charges for option 2. This is the amount of data used that exceed the data included in the plan times the Over-Data Charges per megabyte. Make sure that you adjust the over-data charges since the data used is reported in gigabytes. |
20 | 3 | Calculate the Additional Message Charges for option 2. This is the number of total messages that exceed the messages included in the plan (notice this plan does not distinguish between text and media messages) times the Over-message Charges per message. |
21 | 1 | Calculate the Total Charges for option 2. This is the sum of all of the different charges for this option. |
22 | 1 | Calculate the Taxes and Fees for option 2. This is the total charges times the Cellular Tax/Fee Rate. |
23 | 2 | Calculate the Total Bill for option 2. This is the sum of the total charges and the taxes and fees for this option. |
24 | 2 | Calculate the Monthly Cost for option 3. Reference the monthly cost for option 3 in the model inputs. |
25 | 2 | Calculate the Total Charges for option 3. This is the sum of all of the different charges for this option. |
26 | 2 | Calculate the Taxes and Fees for option 3. This is the total charges times the Cellular Tax/Fee Rate. |
27 | 2 | Calculate the Total Bill for option 3. This is the sum of the total charges and the taxes and fees for this option. |
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty