The Prestige Telephone Company 2- Assume that the total expenses are around the average of $ 231‚000. (By observing first three months’ results) If the total expenses are $ 231‚000 than the total revenue should be $ 231‚000 at the Break-Even Point. On the other hand if the company demand for service will be 205 hours ‚ which means company sales revenue will be $ 82‚000 (as the Public Service Commission’s restrictions says)‚ and the other revenues in the commercial sales assume that around
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calculated as follows to demonstrate the financial impact to the Prestige Telephone: A To keep Prestige Data Service in operation‚ Prestige Telephone will incurre: Expense Lost of Subdiary Revenue Earned Space Corporate Service Total Expense $ 82‚000 21‚438 9‚240 15‚236 78‚962 Service fee paid to Prestige Data Service Net Loss in March Fee paid by Prestige Data Service B To close down Prestige Data Service‚ Prestige Telephone will incurre: Expense Sunk Cost Total Expense 178‚400 4‚560‚000 $ 4
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Prestige Telephone Company Scott Johnson‚ Nicole Phillips‚ Ashton Shuler‚ & Brandy Watts February 25th‚ 2014 Group Contributions Responded to all texts‚ discussion boards‚ and emails Participated in online chat and conference call Answered question 3 Provided the framework of how the case would be set up Suggested new ideas for later projects on how to discuss our topic Responded to all texts‚ discussion boards‚ and emails Participated in online chat and conference call Answered
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Title: PRESTIGE TELEPHONE COMPANY: A CASE ANALYSIS Point of View: Management Consultant I. Issues and Concerns: ■ In 1999‚ the Public Service Commission encouraged all public utilities to: 1. seek new sources of revenues and profits since heading towards deregulation; and 2. To reduce the need for rate increases. ■ Prestige Telephone Co. realized that a centralized service that could plan‚ control‚ and account for its own
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follows to demonstrate the financial impact to the Prestige Telephone: A To keep Prestige Data Service in operation‚ Prestige Telephone will incurre: Expense Lost of Subdiary Revenue Earned Space Corporate Service Total Expense B 82‚000 21‚438 Service fee paid to Prestige Data Service Net Loss in March Fee paid by Prestige Data Service 9‚240 15‚236 $ 78‚962 To close down Prestige Data Service‚ Prestige Telephone will incurre: Expense Sunk Cost 178‚400 4‚560‚000
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Sales Fixed cost10 Sales promotion Fixed cost11 Corporate services Fixed cost11 1 The rent is a fixed cost because SDS has to pay the rent at Salem Telephone independent how many hours they are selling. That means even if SDS sell nothing the rent has to be paid. 2 The custodial services are fixed cost because they depend on Salem Telephone ’s estimated annual cost per square foot and so they are independent from the revenue of SDS. 3 The computer equipment is a fixed cost due to the fact
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7=28.7 February 1485/316=4.7 7584/316=24 =4.7+24=28.7 March 1697/361=4.7 8664/361=24 =24+4.7=28.7 3. Create a contribution margin income statement for Salem Data Services; Assume that intra company usage is 205 hours‚ Assume commercial usage is at the March Level. Revenue Variable costs Contribution Margin Fixed Costs Operating Income (loss) From the case we know that intracompany work was billed at $400 per hour‚ and commercial sales
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Winning Hearts and Minds in War of Plagiarism Summary In Scott Jaschiks’ book titled “Winning Hearts and Minds in War on Plagiarism‚” Jaschik describes the issue of first-year English students plagiarizing work and the numerous faculty members’ solutions to solve plagiarizing. Teachers‚ like North Carolina State University professor Kate Hagopian‚ are working with first-year English students to teach students academic integrity and to understand why students plagiarize. Teachers have
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telecom companies are looking for ways to expand their base and grab that incremental part of market share. The advancement of technology causes a greater consumer demand to fulfill the voids of older‚ less effective communication methods. Technology and growth are the means by which the telecom industry has been able to boom. Riverbend Telephone Company is one of those telecom organizations that is looking to broaden their market share in the telecom industry. Riverbend Telephone Company is an
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SALEM TELEPHONE COMPANY Professor William J. Bruns‚ Jr. & Julie Hertenstein Introduction Accounting is not always a black or white subject; there are many variables to consider when making a business decision. Looking past the numbers and being able to look at the larger picture will determine whether you will be an average manager or a great manager. Background Facing declining profits‚ Salem Telephone Company (STC) is evaluating the future of its subsidiary‚ Salem Data
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