James Whittle Salem Telephone Company Case Study 9/29/2014 1.) The variable costs in Exhibit 2 are Power and Hourly Personnel Wages as the costs fluctuate from month to month and are driven by the revenue hours for the company. The fixed costs in Exhibit 2 are Rent‚ Custodial Services‚ Computer Equipment Leases‚ Computer Maintenance‚ Computer Depreciation‚ Office Equipment and Fixtures Depreciation‚ Salaried Staff Wages‚ Systems Development and Maintenance‚ Administrative Wages‚ Sales Wages
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Salem telephone case 1. ”Revenue hours” represent the key activity that drives costs at Salem Data Service . Which expenses in Exhibit 2 are variable with respect to revenue hours? Which expenses are fixed with respect to revenue hours? A : Variable costs : The power‚ hourly personal. Fixed costs : The rent‚ custodial service‚ computer leases‚ maintenance‚ computer equipment‚ office equipment and fixtures‚ salaried staff‚ system development and maintenance‚ administration‚ sales promotion
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Salem Telephone Data Corp Executive Summary The analysis of the 2004 first quarter reports‚ which include the Summary of Computer Utilization and Summary Results of Operation‚ if is clear that the Data Services division needs to be scrutinized to understand why they continue to operate at a loss. The key areas that need to be addressed are: * Current utilization of computer usage hours * The consistent negative results of the operations * Determine if some of the fixed costs can be
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Salem Telephone Case 1) Which expenses are variable and which are fixed with respect to revenue hours? Variable Fixed Power Rent Hourly personnel Custodial Services Sales promotion Computer leases Corporate services Maintenance Depreciation expenses - computer and office Salaried employees Systems development Sales 2) For each expense that is variable‚ calculate the cost per revenue hour. Power Personnel Sales Promotion Corporate Services January
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key activity that drives costs at Salem Data Services. Which expenses in Exhibit 2 are variable with respect to revenue hours? Which expenses are fixed with respect to revenue hours? Variable expenses: Power Operations: hourly personnel Rent Custodial services Computer leases Maintenance Dep: Computer equipment Dep: Office equipment and fixtures Operations: salaried staff Systems development and maintenance Administration Sales Sales promotion Corporate services Fixed expenses: 2. For each
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In order to improve their net income‚ Flores has suggested three options as follows. Option 1 is to increase the price to $1‚000 per hour while reduce demand by 30%; option 2 is to reduce the price to $600 per hour while increase demand by 30%; option 3 is to increase revenue hours by up to 30% through increasing their promotion cost. Each option will affect net income in the following ways: For option 1: Profit 1 = 205 hours * $400 per hour + $1‚000 per hour * (138 * 70%) hours – total hours
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Through our study of Salem Telephone Company (STC)‚ we’re going to analyze whether or not Salem Data Services (SDS) will be a profitable business to keep. We will do so by utilizing break even analysis. Before we can find our solution‚ we should discuss Salem Data Services’ (SDS) accounting report step by step. To begin‚ the various costs incurred to SDS should be grouped into either variable‚ or fixed. The only variable costs that have any relation to the total revenue hours listed from exhibit
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This book is all about the Salem Witchcraft crisis that occurred in 1692. Mary Beth Norton does an excellent job and explaining the trials and experiences that people have had. Was this conspirency based on the attack of the Indians‚ the policits or was it truly the devil. Book Review I believe that “In the Devil’s Snare” is one of the best book I have ever read. I am not much into history‚ but learning about witchcraft intrigues me. This book is all about the Salem Witchcraft crisis that occurred
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Puritan Communities: Was Salem Village Unique? Salem village in 1692 is something every student learns about in their basic American history course. They learn about the witchcraft trials‚ and the hangings that followed. They learn about Increase and Cotton Mather‚ father and son on opposite sides of the issue of witchcraft. If they are lucky‚ they learn about Rev. Samuel Parris and what led some to like him and his judgments‚ and others to despise him. But they do not typically learn about the
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The Salem Witch Trials During the years 1692‚ fear of devil worshipping and witch craft swept through the city of Salem‚ Massachusetts. More than 200 men‚ women and children were accused of witch craft. Of those 200‚ 20 people were executed. They were taken down to Gallows Hill where each was hanged for their crime. The trials went on for about a year; more and more people came forth with accusations of others who they thought were practicing witch craft or being possessed by the devil.
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