Why did the Bay Area’s housing become so expensive to live in? How did it get so expensive? These questions were often asked by visitors that came from that were cities far from the Bay Area like Fremont and Sacramento. Over the past seven years‚ the Bay Area’s housing prices have increased exponentially as more people come in for technology job opportunities. According to a scholarly article‚ called Zillow: Tech Workers’ Silicon Valley Home Values Are Outpacing Neighbors’ ‚“Bay Area home values
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San Francisco Weather Center The San Francisco Bay Area‚ also known as the Bay Area‚ is a vastly populated region that surrounds the San Francisco and San Pablo estuaries in Northern California‚ United States (wiki). The region hosts the major cities and metropolitan areas of San Francisco‚ Oakland‚ and San Jose‚ along with smaller urban and rural areas The San Francisco Bay Area offers a significant variety of microclimates because the hills‚ mountains‚ and large bodies of water produce such
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Prestige Telephone Company – Case Study In April 2003‚ Daniel Rowe‚ president of Prestige Telephone Company‚ was preparing for a meeting with Susan Bradley‚ Manager of Prestige Data Services‚ a company subsidiary. Partial deregulation and an agreement with the state Public Service Commission had permitted Prestige Telephone to establish a computer data service subsidiary to perform data processing for the telephone company and to sell computer service to other companies and organizations. Mr.
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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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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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| 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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Case Study #1. Salem Telephone Company 1. Variable expenses: Power (the more hours sold‚ the more energy consumed) The hourly personnel (operations) works only when the computers are in operation Fixed expenses: The rent has to be paid despite any level of production ($8‚000 monthly) The custodial services depend on Salem Telephone’s estimated space‚ they are independent from the revenue of the Company The computer leases were acquired to run the business (before it was actually started
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COST/HOUR JAN. FEB. MAR. Power: 4.7 4.7 4.7 Operations (hourly personnel): 24 24 24 TOTAL: 28.7 28.7 28.7 3.) CONTRIBUTION MARGIN INCOME STATEMENT SALES/REVENUE Intracompany: 205 hrs * $400/hr = $82‚000 Commercial: 138 hrs * $800/hr = $110‚400 Total: 343 hrs $192‚400 VARIABLE EXPENSES Power: $4.7/hr * 343 hrs = $1‚612.10 Operations (hourly personnel): $24/hr * 343 hrs = $8‚232.00 Total: $9‚844.10 FIXED EXPENSES - Rent $8‚000
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The following questions are intended to guide you in the identification of important case issues (these are similar to the assignment questions at the end of the case). 1) Identify which of Prestige Data Services’ costs are variable‚ fixed‚ or mixed (recall that for a mixed cost‚ total costs = fixed costs + (variable cost per unit of cost driver x units of cost driver)). For variable costs‚ estimate variable costs per unit of cost driver (note that the cost driver may not be the same for every
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