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
Premium Variable cost Costs Fixed cost
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
Premium Variable cost Costs Fixed cost
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
Premium Variable cost Costs Management accounting
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
Premium Variable cost Costs Management accounting
English Grammar in Conversation Geoffrey Leech DEPARTMENT OF LINGUISTICS AND MODERN ENGLISH LANGUAGE LANCASTER UNIVERSITY‚ LANCASTER LA1 4YT‚ UK A thorough description of spoken English grammar is felt to be overdue. After all‚ spoken language has largely been neglected by grammatical tradition; the word grammar itself descends from the classical Greek word for writing. The grammarian ’s bias towards the written language remains strong today‚ and is reflected in such terminology as ’left
Premium Grammar Writing English language
The Destruction of Communication My generation faces many problems. One of the problems my generation faces is the lack of communication between each other because of new technology. Technology has its great benefits for entertainment‚ communication‚ and the resources to research information on anything you want. Not only does technology has its great benefits‚ but it can be accessed anywhere: at home‚ in school‚ in cafes‚ or libraries. Also‚ obtaining technology can be cheap depending on
Free Instant messaging Communication Text messaging
Make and Receive Telephone Calls This unit is about making and receiving telephone calls and transferring calls‚ when necessary‚ in a business environment. 1- Understand how to make telephone calls. 1.1 Describe the different features of telephone systems and how to use them. Telephone systems have many different features this allows us to handle and manage calls in a professional manner. • Call holding- places a caller on hold so you can perform another task. This could be to locate paperwork
Premium Telephone call Telephone Telephone number
Turkesa Bullock BUS 5431 Managerial Accounting January 31‚ 2013 Salem Telephone Company Harvard Case Study Recommendation: The two suggestions by Flores: 1. Use pricing strategy to increase commercial revenue hours * This method will not add extra costs. However‚ according to our estimation above‚ changing price to either $1000 (97 hours) or $600 (180 hours) cannot prevent a net loss. 2. Increase sales promotion cost to win more business but the price unchanged *
Premium Marketing Costs Cost
9. Presentations 1. Hello‚ my name is Ionela! I work in an office. I love my job‚ but sit at my desk all the time. I usually run in the park after work and I eat healthy food to be fit. I prefer fruit and vegetables. I like bababas‚ oranges‚ melon‚ apples‚ cucumbers‚ tomatoes and lettuce. For breakfast I usually have cereal and milk. I never eat bread‚ salami or eggs! When I come to work‚ I make a cup of coffe – without sugar‚ of course. My lunchbreak is very short. I just eat a chicken sandwich
Premium Fruit Italian cuisine Italy
Joe and Janie engaged in many conversations throughout their time together. One day‚ they get into an argument. The argument resulted in the fact that Janie could not find any pig’s feet for a customer. Janie has told Joe that she ordered a whole keg of pig’s feet the day before but when the customer went to get some‚ there wasn’t any left. Joe then asked Janie where the bill for the pig’s feet was. Janie replied that it’s either on the nail or on his desk. Joe said that it was in neither places
Premium English-language films Marriage Husband