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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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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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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Tri-State Company. Since he is the manager of the company his duties are to manage the day to day affairs of the company.He can make plans‚ decisions and policy to implement these plans. AT&T Company This is the Company in America known as American Telephone and Telegraph Company. Ithas a good market over US. This was the company who sent the shock waves throughout theindustry by its price scheme which affected Tri-State very badly. Customers and Elderly People They are the King of the company. They
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Qualities of a good telephone operator Punctuality – it is extremely important that an operator reports for duty at least five minutes before his/her shift. Personal hygiene and deportment – operators must be particularly careful that their mouths are free from odour. Hair should be properly groomed and finger nails well maintained. Accuracy – errors are usually caused by carelessness or misunderstanding. All this can be avoided by the exercise of reasonable care‚ particularly in putting
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The Mysterious Benedict Society‚ by Trenton Lee Stewart‚ is a powerful work of science fiction exploring the devastating‚ large-scale mental effects of a formidable new (fictional) device. This technological element places it firmly in the science fiction genre. It is a strong work of science fiction because it explores several different outcomes‚ rather than just one‚ of new technology. However‚ it stands out from other science fiction works in two ways: it utilizes a lighter tone and different
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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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Accounting for Decision Making (GSM5301) Case Study Report 6 Prestige Telephone Company GROUP 4 : LECTURER : Dr. Ahmed Razman HAND IN DATE : 26 March 2014 1.0 INTRODUCTION 2.0 Prestige Data Services is a subsidiary of Prestige Telephone Company‚ designed to perform data processing for the telephone company and selling computer services to other organizations. The subsidiary started operations in 1995 and has yet to experience a profitable month. Worse
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1.) "Revenue hours" represent the 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: Wages of hourly personnel‚ Power Fixed: Rent‚ custodial services‚ computer leases‚ maintenance‚ depreciation‚ salaried staff wages‚ administration‚ sales‚ systems development‚ sales promotion‚ corporate services 2.) For each expense that is variable with respect to
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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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