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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his study about the human voice he opened a workshop. He also did important work in communication for the deaf. Throughout his life he held more than 18 patents. Bell was one of the primary inventors of the telephone. Through many years of experimentation with sound waves he created the telephone. Bell got the idea from the phonautograph version that he created. The phonautograph worked by drawing sound waves so this made him think that it was possible to create electrical currents that correlated
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services through a range of wireless‚ fixed‚ and broadband technologies under the "Beeline"‚ "Kyivstar"‚ "djuice"‚ “Wind”‚ "Infostrada" “Mobilink”‚ “Leo”‚ “banglalink”‚ “Telecel”‚ and “Djezzy” brands. The company is listed as an ADS on the New York Stock Exchange under the symbol "VIP". The company operates in Russia‚ Ukraine‚ Kazakhstan‚ Uzbekistan‚ Tajikistan‚ Armenia‚ Georgia‚ Kyrgyzstan‚ Cambodia‚ Laos‚ Algeria‚ Bangladesh‚ Pakistan‚ Burundi‚ Zimbabwe‚ Central African Republic‚ Italy and Canada
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PRESTIGE TELEPHONE COMPANY 1.Identify the costs that are relevant to the analysis to discontinue Prestige Data Services: Relevant costs in the analysis by Prestige Telephone Company decision to discontinue Prestige Data Services include: fixed costs which must be absorbed by the parent company (Prestige Telephone) upon shutdown; outstanding Prestige Data Services debts; costs of retraining retained employees; costs associated with outsourcing data services previously provided by Prestige Data
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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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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 cost-volume-profit (CVP) analysis
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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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| 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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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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