Jana Morgan is about to sign up for cellular telephone service. She is primarily interested in the safety aspect of the phone; 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: OBJECTIVE ◀ 1 ◀ 2 ◀ 3 Monthly fee Free local minutes Additional charges per minute: Airtime Long distance Regional roaming National roaming Plan 1 $ 20 60 $0.40 0.15 0.60 0.60 Plan 2 $ 30 120 $0.30 — — 0.60 Both plans are subject to a $25 activation fee and a $120 cancellation fee if the service is can- celled before 1 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. CONCEPTUAL CONNECTION 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?

Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?

Dr. Vicki Belya is traveling from Yangoon to Los Angeles. She needs to change planes in Bangkok and board another airline’s flight in Tokyo. However, the ariline she is flying does not have interline agreements. Provide a basic explanation of what she can expect at every  point of her journey.

Corral Cartage leases trucks to service its shipping contracts. Larger trucks have cheaper operating costs if there is sufficient business, but are more expensive if they are not full. CC has estimates of monthly shipping demand. What comparison method(s) would be appropriate for choosing which trucks to lease? Cevap: