Question

ANSWER ALL THREE QUESTIONS IN PICTURE AND FILL IN CHART

three questions in the case study need to be show in excel

Introduction to Spreadsheet Modeling CHAPTER 2 91 John Woos Cellular Connections 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. Johns Concerns John has noticed that some plans tend to low-ball on the monthly fee but then stick the cus- tomer 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 a Ш high 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 $0.15 per minute for any time over 2000 minutes. The “executive plan charges a fixed fee of $75 per month for 1000 minutes of airtime plus $0.09 per minute over 1000 minutes. C) 3 8 3 Spreadsheet Modeling and Discussion Questions 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? Perform an analysis based on the idea that John believes his agents average use will be 50 hours per month but knows that they will never use less than 40 hours or more than 60 hours per month. 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 50 hours a month? 2. 3.

John Woo’s Cellular Connectsion Case

Your Answer

  1. Which plan should he select?
  1. Which plan should he select at the following hours?

40 hours

45 hours

50 hours

55 hours

60 hours

65 hours

70 hours

75 hours

80 hour

85 hours

0 0
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