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Lecture 1

BLO 2205 Lecture 1: MobilePhoneExercise

Course Code
BLO 2205

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Mobile Phone The real cost of a phone can be very confusing. There are often fixed fees, rates for
different times of the day, connection fees and SMS charges.
Imagine you have been given the following details about the plan for a new mobile phone you are
interested in purchasing. Before you do so you want to work out how much it will cost per month.
You have a rough idea about your telephone usage (from your last phone) and so you should be able
to work out an estimated monthly cost.
Imagine that you will purchase the phone for $150 and went onto a $49 plan. This entitled you to
100 ‘free’ SMS and $200 worth of free calls. Hence the minimum monthly charge is $49 but anything
over the ‘free’ limits you have to pay on top of the $49.
New phone purchase cost: 150
Contract details
Monthly charge $49
SMS 25c per SMS
Connection cost per call (all types of calls) 22 cents
Land line calls (anytime) 9 cents per minute
Mobile Phone calls
Peak 35 cents per 30 seconds
Off Peak 20 cents per 30 seconds
You have analysed your calls from your last phone and you have determined the following monthly
usage per month:
SMS 180
Land lines 80 calls lasting 40 minutes
Mobile phone calls
100 peak calls lasting 35 minutes
120 off-peak calls lasting 70 minutes
Develop a report in Excel that determines the variable monthly cost (does not include the cost of the
new phone). Remember values should be entered into cells and avoid using specific values in
Assume you will have the phone for 12 months. Show the monthly costs for each month of the year.
This should report should spread the purchase cost of the new phone across the year.
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