EXAMPLES SOLVED DURING LIVE SESSION 1. Calculate the monthly telephone bill for the following;
Name Units used Standing charge Cost per unit
Mr. Gibson 985 $25.80 12¢
$11845.80 b. $118.20 c. $148.93 d. $144

Answer
FORMULA
Cost of units used = Number of units x rate charged by the telephone company
= 985 x 12c
= 11 820 c ( divide by 100c to convert to Dollars )
= $ 118.20
Standing charge = $ 25.80

Telephone bill = Cost of units + Standing Charge
= $118.20 + $ 25.80
$ 144

1. In January Mr. Amin’s telephone bill was calculated on the following information
Long distance call to Duration of calls in minutes Fixed charge for 3 minutes or less Charge per additional minute
Ontario
New York
Paris 25
37
19 $17.65
$15.40
$19.20 $5.90
$5.35
$6.50
Monthly rental for telephone $25.50
Rebate received on rental for three weeks when it was not working $12.00
Calculate Mr. Amin’s actual telephone bill for January

ANSWER –
LETS CALCULATE THE TIME SPENT TALKING BEYOND 3 MONTHS FOR EACH CITY
Long distance call to Duration of calls in minutes Time spent talking beyond the 3 minutes point
Ontario
New York
Paris 25
37
19 (25 - 3) = 22
(37 - 3) = 34
(19 -3 ) = 16

Formula

Cost of call = cost for 3 minutes or less + time above 3 minutes x Rate of charge
Ontario cost = $17.65 + 22 minutes x $ 5. 90 = $ 129.80
New York Cost $ 15.40 + 34 minutes x $ 5.35 = $181.90
Paris Cost $19.20 + 16 minutes x $ 6.50 = $104.00
Monthly rental for telephone +$ 25.50

Sub Total $ 441.20
Rebate received on rental for three weeks when it was not working - $12.00

Mr. Amin’s actual telephone bill for January $429.20

Since the phone was not working the customer will get back $12.00. (subtract)