Classify the charges associated with cellular phone service

Assignment Help Financial Accounting
Reference no: EM13940630

FLEXIBLE AND COMMITTED RESOURCES, CAPACITY USAGE FOR A SERVICE

Jana Morgan is about to sign up for cellular telephone service. She is primarily interested in the safety aspect of the phone; that is, 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:

  Plan 1 Plan 2

Monthly fee

$20

$ 30

Free local minutes

60

120

Additional charges per minute:

 

 

Airtime

$ 0.40

$   0.30

Long distance

0.15

-

Regional roaming

0.60

-

National roaming

0.60

0.60

Both plans are subject to a $25 activation fee and a $120 cancellation fee if the serv- ice is cancelled before one 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.

2. 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. Which plan will be most cost effective? Why?

3. 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. Which plan will be most cost effective? Why?

4. Analyze your own cellular phone plan by comparing it with other possible options.

Reference no: EM13940630

Questions Cloud

Determine its initial angular velocity and retardation : The drive to a flywheel is disconnected and in 30 s it is seen to have rotated through 120 revolutions; 30 s later it finally comes to rest. Assuming the angular retardation to be uniform, determine (a) its initial angular velocity, (b) the angula..
How should community and environmental group respond : Sandy pond- identify stakeholders, rationale for why company is dumping and if there are ethical bases, what is the right thing for the company to do, how should community and environmental group respond.
Has this man committed common law burglary : Can Nicolena be found guilty of arson? Is there any other crime for which she could be prosecuted?
Write a recursive method called productarray : Write a recursive method called productArray that takes an array of integers, a start index and an end index and returns the product of the elements of the array.
Classify the charges associated with cellular phone service : Assume that Jana will use, on average, 45 minutes per month in local calling.  Classify the charges associated with the cellular phone service as (a) committed resources or (b) flexible resources.
Find the angular acceleration and the time taken : Find (a) the angular acceleration, (b) the time taken, (c) the work done, (d) the maximum power developed, (e) the distance travelled by a point on the rim of the flywheel.
Copycat crimes are certainly not new phenomena : Copycat crimes are certainly not new phenomena.  Tylenol bottles laced with poison on supermarket shelves (1982), syringes planted in Pepsi cans (1993), and letters purposely containing deadly anthrax (2001) all occurred in years when a wave of simil..
Explain the pennsylvania superior court ruling : The plaintiff raises the following question: When the Crime Victims' Employment Protection Act was written, did the Legislature intend to protect crime victims who have not yet attended their hearings, from threats, coercion, and loss of employmen..
Program translates a number into the closest letter grade : Write a Java program that translates a number into the closest letter grade. For example, the number 2.8 (which might have been the average of several grades) would be converted to B-

Reviews

Write a Review

Financial Accounting Questions & Answers

  Company c also issues bonds with face value

QI Company C also issues bonds with face value of $1,000 which pay interest of $X annually. They are redeemable at 105 in 8 years. Find the value of $X that will also yield j1 = 7% on a $1,000 bond from company C, if such a bond costs $960.

  Preparation of income statement and classified balance

preparation of income statement and classified balance sheet.preparing financial statementsthe following account

  The bonds are classified as held-to maturity

On Jan 1, 2010, Morgan Company acquires 300,000 of Nicklaus, Inc, 9% bonds at 278,384. the interest is payable each December 31, and the bonds mature Dec 31, 2012. the investment will provide Morgan Company a 12% yield. The bonds are classified as..

  Kirk company gathered the subsequent information for the

kirk company gathered the subsequent information for the year ended 31st december 2015units produced 45000units

  Inventory method for income tax purposes

Which Inventory method you recommend for reporting for income tax purposes? why?The company is operating in an inflationary environment. Which method should the company use to maximize inventory valuation? why?Should the replacement cost be used to v..

  Elucidate how choice of the type of responsibility center

Elucidate how the choice of the type of responsibility center affects behaviour. You should support your discussion by using real world examples.

  Taxable income and tax liability

What is the total amount of itemized deductions Jan may claim on her tax return, what is Jan’s taxable income and tax liability?

  Producing a varied and complex mix of products

Why do companies producing a varied and complex mix of products have higher cost than companies producing only a narrow range of products?

  Concept of accounting for merchandise through short

concept of accounting for merchandise through short questions and journal entries.1.nbspon june 1 20x1 jordan company

  Calculate the cost of the ending inventory and cost of goods

Calculate the cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 400 units occurred on May 15 for a selling price of $8 and a sale of 440 units on June 27 for 49..

  Find the activity rate for each activity cost pool

Find the activity rate for each activity cost pool. Also compute the amount of overhead cost that would be applied to each product.

  Identify control environment factors that affect company

You expanded your tests in view of the situationsand are satisfied that the perpertual records reasonably reflect the quantities on hand. Identify control environment factors that affect the company's internal control.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd