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In the first month of a pager contract, Mr. ‘X’ made 238 calls. He paid activiation fee of $15, rental of $8, monthly service charge of $11.99 that allows him a maximum of 150 calls a month. Calls beyond the maximum cost $.020 per call. What was Mr. ‘Xs’ cost for the first month of pager service?
Expert Answer
| COST OF PAGER SERVICE | ||
| PARTICULAR | NOTE | AMOUNT |
| activation fee | 15 | |
| rental fee | 8 | |
| service charges | 11.99 | |
| charges beyond the limit | note 1 | 1.76 |
| TOTAL | 36.75 | |
NOTE 1 total calls = 238 calls
in limit calls = 150 calls
excess calls = 238 – 150 = 88 calls
charges of extra calls at $0.020 x 88 cals = 1.76
