Chapter 7, Problem 10HMP

Explanation of Solution

Analyzing telecommunications service and costs:

Given:

Number of employees = 35

Hours per day = 3

Text messages per day = 30

Photos per week = 5

$\begin{array}{c}\text{The average working days per month = }\frac{\begin{array}{l}\text{number of weeks per year × number of }\\ \text{ working days per week}\end{array}}{\text{number of months}}\\ \text{= }\frac{\text{52}\text{× 5}}{\text{12}}\\ \text{= 22}\end{array}$

Therefore the average working days per month for an employee is 22. So the total number of employees is $\text{22 }\times \text{ 35 = 770}$

$\begin{array}{c}\text{Minutes used per day = Hours per day }\times \text{ minutes per hour}\\ \text{= 3 }\times \text{ 60}\\ \text{= 180}\end{array}$

Therefore the minutes used per day for an employee is 180. So the total number of employees is $\text{180 }\times \text{ 35 = 6300}$

$\begin{array}{c}\text{Minutes used per month = Minutes used per day }\times \text{ Average working days per month}\\ \text{= 180 }\times \text{22}\\ \text{= 3960}\end{array}$

Therefore the minutes used per day for an employee is 3960. So the total number of employees is $\text{3960 }\times \text{ 35 = 138600}$

$\begin{array}{c}\text{Text messages per month = Text messages per day }\times \text{ Average working days per month}\\ \text{= 30 }\times \text{ 22}\\ \text{= 660}\end{array}$

Therefore the minutes used per day for an employee is 660. So the total number of employees is $\text{660 }\times \text{ 35 = 23100}$

$\begin{array}{c}\text{Photos per month = }\frac{\text{Photos per week }\times \text{ Average working days per month}}{5}\\ \text{= }\frac{\text{5 }\times \text{ 22}}{5}\\ \text{= 22}\end{array}$

Therefore the minutes used per day for an employee is 22. So the total number of employees is $\text{22 }\times \text{ 35 = 770}$

The features of the mobile handsets and wireless plans offered by the vendors are given below:

• AT&T Mobile Shared Value Plan – offer monthly service as 35 no monthly text messaging, no monthly photos and data as 300.
• Verizon More Everything Plan for Business – offer monthly service as 35 no monthly text messaging, no monthly photos and data as 410.
• T-Mobile Simple Choice 1 GB – offer monthly service as 15, no monthly text messaging, no monthly photos and no data.

First year cost per employee:

According to the AT&T Mobile Shared Value Plan, the first year cost per employee is given below:

$\begin{array}{c}\text{First year cost per employee = }\left(\begin{array}{l}\text{Number of months }\times \left(\begin{array}{l}\text{Monthly service + }\\ \text{Monthly text messaging + }\\ \text{Monthly photos + Phone }\end{array}\right)\\ \text{+ Phone + Data }\end{array}\right)\\ =\text{ 12 }\times \left(\text{35 + 0 + 0 + 0}\right)\text{+ 0 + 300}\end{array}$

    $\begin{array}{c}\text{= }\left(\text{12 }\times \text{ 35}\right)\text{ + 0 + 300}\\ \text{= }420\text{ + 0 + 300}\\ \text{= 720}\end{array}$

Therefore first year cost per employee is 720.

According to the Verizon More Everything Plan for Business, the first year cost per employee is given below:

$\begin{array}{c}\text{First year cost per employee = }\left(\begin{array}{l}\text{Number of months }\times \left(\begin{array}{l}\text{Monthly service + }\\ \text{Monthly text messaging + }\\ \text{Monthly photos + Phone }\end{array}\right)\\ \text{+ Phone + Data }\end{array}\right)\\ =\text{ 12 }\times \left(\text{35 + 0 + 0 + 0}\right)\text{+ 0 + 410}\end{array}$

    $\begin{array}{c}\text{= }\left(\text{12 }\times \text{ 35}\right)\text{ + 0 + 410}\\ \text{= }420\text{ + 0 + 410}\\ \text{= 830}\end{array}$

Therefore first year cost per employee is 830.

According to the T-Mobile Simple Choice 1 GB, the first year cost per employee is given below:

$\begin{array}{c}\text{First year cost per employee = }\left(\begin{array}{l}\text{Number of months }\times \left(\begin{array}{l}\text{Monthly service + }\\ \text{Monthly text messaging + }\\ \text{Monthly photos + Phone }\end{array}\right)\\ \text{+ Phone + Data }\end{array}\right)\\ =\text{ 12 }\times \left(\text{15 + 0 + 0 + 0}\right)\text{+ 0 + 0}\end{array}$

    $\begin{array}{c}\text{= }\left(\text{12 }\times \text{ 15}\right)\text{ + 0 + 0}\\ \text{= }180\end{array}$

Therefore first year cost per employee is 180.

Second year cost per employee:

According to the AT&T Mobile Shared Value Plan, the second year cost per employee is given below:

$\begin{array}{c}\text{Second year cost per employee = First year cost per employee}-\left(\text{Phone + Data}\right)\\ =\text{ 720 }-\text{ 0 + 300}\\ \text{= 420}\end{array}$

Therefore second year cost per employee is 420.

According to the Verizon More Everything Plan for Business, the second year cost per employee is given below:

$\begin{array}{c}\text{Second year cost per employee = First year cost per employee}-\left(\text{Phone + Data}\right)\\ =\text{ 830 }-\text{ 0 + 410}\\ \text{= 420}\end{array}$

Therefore second year cost per employee is 420