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Question: daisy has a busy social and work life and uses...

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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.

a)       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?


























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


































c)       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?































































d)      Daisy’s friend Lily has a plan with Phones’R’Us and has a bill of $48.  How many SMS did she make?

































e)       Daisy’s frien Poppy has a plan with Text’4’Cheap.  She can only afford to pay $25 per month.  How many SMS should she limit herself to?































f)       A new provider is to enter the market.  They always promise to be cheaper than the competition.  What pricing would you suggest they use?


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