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Hiring Help Businesses incur many costs. Can you think of some advantages of hiring specialized professionals to perform certain tasks?. Lesson Objective Calculate the monthly telephone cost. Content Vocabulary. utilities Public services, such as telephone, electricity, water, and gas.

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Hiring help businesses incur many costs

Hiring Help

Businesses incur many costs.

Can you think of some advantages of hiring specialized professionals to perform certain tasks?


Hiring help businesses incur many costs

Lesson Objective

Calculate the monthly telephone cost.

Content Vocabulary

utilities

Public services, such as telephone, electricity, water, and gas.

monthly service charge

The base amount charged by a utility, such as a phone company, to its customers for use of its services.

  • utilities

  • monthly service charge


Hiring help businesses incur many costs

Example 1

Andy’s Laundry has 2 telephone lines and uses the $59.99 plan for the Flexible Advantage Calling Plan shown in Figure 19.1 below. Andy’s uses 550 minutes.

A 3 percent federal excise tax is added to the bill.

What is the total cost of its telephone service for the month?


Hiring help businesses incur many costs

Figure 19.1


Hiring help businesses incur many costs

Example 1 Answer: Step 1

Find the cost of additional minutes.

(550 – 500) × $0.35 = $17.50

No additional lines.


Hiring help businesses incur many costs

Example 1 Answer: Step 2

Find the federal excise tax.

($59.99 + $17.50) ×3% =

$77.49 ×3% = $2.3247 or $2.32


Hiring help businesses incur many costs

Example 1 Answer: Step 3

Find the total cost for the month

Monthly Cost of Cost of Federal

Service + Additional + Additional + Excise

Charge Minutes Lines Tax

$59.99 + $17.50 + $0 + $2.32 = $79.81


Hiring help businesses incur many costs

Practice 1

Use the Flexible Advantage Calling Plan (Figure 19.1) above to find the total cost for the month.

Monthly service plan: $119.99

Number of lines: 5

Number of minutes: 1,298

Federal excise tax: 3.5 percent


Hiring help businesses incur many costs

Practice 1 Answer

$186.26


Hiring help businesses incur many costs

Practice 2

Use the Flexible Advantage Calling Plan (Figure 19.1) above. Century Homes has 3 telephone lines and uses the $89.99 plan. This month the company used 1,203 minutes, 20 minutes of domestic wireless long distance, and 15 minutes of roaming. The federal excise tax rate is 3 percent.

What is the total cost for the month?


Hiring help businesses incur many costs

Practice 2 Answer

$195.73


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