Daisy Case Study - Finance Assignment Help

Assignment Task :

Question 1: (P1, P2, K1, K2)

Daisy  has a busy social and work life and uses her mobile phone to stay in contact.  She is trying to compare mobile phone providers to find the most cost effective option for her. 

Phones’R’Us offer a $40 per month plan.  This includes 15 000 free SMS within Australia.  For each SMS over 15 000, Phones’R’Us then charge a flat rate of 0.1 cents per SMS.

Text’4’Cheap charge 0.35 cents per SMS but have no monthly costs.

1. On the graph paper provided, on the same set of axes, draw graphs which show the monthly spend for Phones’R’Us and Text’$’Cheap for users who spend between 0 and 20 000 SMS’s per month.   Hint: make x the number of SMS and y the monthly spend.

2. Equations in the form of y=mx+c  can be used to represent these mobile phone plans.

3. Write an equation to represent the Text’4’Cheap mobile phone plan.

4. Write two equations to represent the Phones’R’Us mobile phone plan.  Hint, the first equation will be for 0≤x≤15 000 and the second will be for x>15 000.

5. Daisy estimates she sends 15 000 SMS per month.  Use the above equations to determine the monthly cost to Daisy for each provider.  Which phone provided would you recommend and why?

6. Daisy loses her job.  She now estimates she sends only 5 000 SMS per month.  Would you recommend she switch providers?  Why?

7. Daisy gets a new job and her boss asks her to write a recommendation for which phone provided to use.  Write a short recommendation for Daisy to give her boss?

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