Nestor owns Donkey Canyon Tours, which offers vacationers the unique opportunity
ID: 1721237 • Letter: N
Question
Nestor owns Donkey Canyon Tours, which offers vacationers the unique opportunity to explore a local canyon on donkeyback. Taking reservations by phone is a crucial part of doing business, so Nestor sets up a phone plan with two lines, which includes national call time and international call time. The phone plan fees are as follows: $58.99 for a monthly service plan with one line. 1,500 minutes of national call time, and 1,000 minutes of international call time; $15.00 for each additional phone line; $0.10 for each national overage minute; $3.50 for each international overage minute; and a federal excise tax of 3% of the national calls total. Last month. Donkey Canyon Tours used 1,650 minutes of national phone time and 1,008 minutes of international. What is the total cost for Donkey Canyon Tours' phone plan last month?Explanation / Answer
Fixed Monthly Charges = $ 58.99
Free National and International Calls = 1500 minutes and 1000 Minutes resp.
Used Nati0nal and International Calls = 1650 minutes and 1008 Minutes resp.
Paid National and International Calls = 150 minutes and 8 Minutes resp.
Charges on National Calls = 0.10 * 150 = $15
Federal excise tax on National Calls = 3% of $15 = $0.45
Total charges on National Calls = $15.45
Charges on International Calls = 3.50 * 8 = $28
Total Cost = Monthly Charges + Charges on Extra national Calls + Charges on Extra International Calls
Total Cost = 58.99 + 15.45 + 28
Total Cost = $102.44
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