Salem Telephone Company-Case Study Peter Flores‚ President of Salem Telephone Company‚ believes that a computer subsidiary company (Salem Data Services) appears to be unprofitable. And because of this‚ he must decide and determine whether it is actually unprofitable and consider whether changes in prices or promotion might improve profitability by using the Break-Even point analysis. But before we come out to any solutions‚ we must discuss Salem Data Services accounting report
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by solving two equations with two unknowns). 2) Will the transactions between Prestige Data Services and Prestige Telephone be relevant to all of your analyses? Why or why not? 3) Assume that internal company demand must be met before any commercial sales can be made (i.e.‚ Prestige Data Services will receive revenue and incur variable costs based on hours used by Prestige Telephone). What level of commercial sales of computer use does the company need to break even each month? 4) Complete a
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Prestige Telephone Company I. Case Background Prestige Data Services (PDS)‚ a subsidiary of Prestige Telephone Company (PTC)‚ has been experiencing bottom line losses for the two years it has been operating since 1995. The subsidiary has been performing all the data processing for the telephone company and selling computer services to other companies and organizations. Susan Bradley‚ the subsidiary manager was preparing for a meeting with Daniel Rowe‚ president of Prestige Telephone
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Riverbend Telephone Company has determined that they need a new maintenance truck and crew. Looking at the options they obtained 4 bids from truck dealers. They are expecting the truck to have a working life of five years. We looked at both options and believe that purchasing a new truck is the most cost effective when looking at keeping the truck for five years. The best offer for a lease is $7‚200 a year with a total present value of $36‚000. The best offer for purchasing a truck is $24
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Name AP Language & Composition April 15‚ 2013 Conversation – Economy In “Economy”‚ Thoreau writes‚ “Most of the luxuries‚ and many of the so called comforts of life‚ are not only indispensible‚ but positive hinderances to the elevation of mankind”. He also poses two questions that address both microeconomics and macroeconomics: “What is the nature of the luxury which enervates and destroys nations?” and “Are we sure there is none of it in our own lives?” After having read Waste by Wendell
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| Prestige Data Service 2010 SUMMER Executive Summary To assist Prestige Telephone Company on making the decision of continue its subsidiary or not‚ this report provides an analysis of Prestige Data Service (the subsidiary) on the status quo revenues and costs‚ a prediction on its break even situation‚ as well as possible options to increase profit. The report has its limitations due to insufficient detailed information on both other revenues and variable costs of Prestige Data Service
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SYG2000 October 20th‚ 2013 Module 8: Sociological Conversations A “hook up” culture has become the way it is amongst most college campuses. It has become rare to see couples walking through campus or out on dates at night. The idea that we’re young and have no need to be serious about relationships has overcome the ideas of the past that at this point in our lives we should be looking to find our significant others. The music and television programs that are popular today do not promote monogamy
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Case Analysis: Prestige Telephone Company Liam Hennessy‚ Xinyi Zhang‚ Yuan Chai‚ and Anthony Saba 1. Reasons for Continuing Losses Prestige Data Services’ main problem is that they have too many available hours that are not generating any revenue. In the first quarter of 2003‚ they have an average of 176 available hours per month of available hours. Its operations exact a huge amount of fixed costs to cover. If they could find more commercial customers for the available capacity‚ they could
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Riverbend Telephone Company The Riverbend Telephone Company is experiencing growth and had previously tried outsourcing some of its installation work to handle the overflow above its capacity. This was unsatisfactory‚ and so to accommodate the new customers‚ RTC needs to obtain a new maintenance truck and crew. It is considering whether leasing or buying the new truck necessary to their operations is the preferable method of investment. Question 1& 2 Without considering financing the
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of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] | Kassandra Bartlett EAC150BF October 2‚ 2012 In Class Essay Dorthey Parker’s story‚ “A telephone Call” is a monologue of a very common situation; a young woman desperately awaiting the expected call from a man‚ who she is very much infatuated with. This woman is in constant battle with her contradicting thoughts‚ based around the man’s use of
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