EBK MANAGEMENT INFORMATION SYSTEMS
EBK MANAGEMENT INFORMATION SYSTEMS
16th Edition
ISBN: 9780135192047
Author: LAUDON
Publisher: VST
Expert Solution & Answer
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Chapter 7, Problem 10HMP

Explanation of Solution

 Analyzing telecommunication service and costs:

 Given:

 Number of employees = 35

 Hours per day = 3

 Text messages per day = 30

 Photos per week = 5

 The average working days per month = number of weeks per year × number of                    working days per weeknumber of months52× 512= 22

 Therefore, the average working days per month for an employee is 22. So, the total number of employees is 22 × 35 = 770

 Minutes used per day = Hours per day × minutes per hour= 3 × 60= 180

 Therefore, the minutes used per day for an employee is 180. So, the total number of employees is 180 × 35 = 6300

 Minutes used per month = Minutes used per day × Average working days per month= 180 ×22= 3960

 Therefore, the minutes used per day for an employee is 3960. So, the total number of employees is 3960 × 35 = 138600

 Text messages per month = Text messages per day × Average working days per month= 30 × 22= 660

 Therefore, the minutes used per day for an employee is 660. So, the total number of employees is 660 × 35 = 23100

 Photos per month = Photos per week × Average working days per month5× 225= 22

 Therefore, the minutes used per day for an employee is 22. So, the total number of employees is 22 × 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:

 First year cost per employee = (Number of months × (Monthly service + Monthly text messaging + Monthly photos + Phone ) + Phone + Data )= 12 × (35 + 0 + 0 + 0)+ 0 + 300

                     (12 × 35) + 0 + 300420 + 0 + 300= 720

 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:

 First year cost per employee = (Number of months × (Monthly service + Monthly text messaging + Monthly photos + Phone ) + Phone + Data )= 12 × (35 + 0 + 0 + 0)+ 0 + 410

                     (12 × 35) + 0 + 410420 + 0 + 410= 830

 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:

 First year cost per employee = (Number of months × (Monthly service + Monthly text messaging + Monthly photos + Phone ) + Phone + Data )= 12 × (15 + 0 + 0 + 0)+ 0 + 0

                     (12 × 15) + 0 + 0180

 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:

 Second year cost per employee = First year cost per employee(Phone + Data)= 720  0 + 300= 420

 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:

 Second year cost per employee = First year cost per employee(Phone + Data)= 830  0 + 410= 420

 Therefore, second year cost per employee is 420

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