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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There are many mysterious places in all nations that well-known all around world. Among those places‚ Lascaux Cave is famous for its Paleolithic cave paintings which is located in southwestern France. Researchers of the cave found it as 17300 years old. They primarily consist of images of large animals‚ most of which are known from fossil evidence to have lived in the area at the time. In 1979‚ Lascaux was added to the UNESCO World Heritage Sites. This place is also known as “First color photos from
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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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The Inspector Calls. Michael Johnson Explain how far Priestley uses the features of a ‘Well Made Play’ to create additional tense and suspension in an ‘Inspector Calls’. Inspector Calls was written in 1945 by John Boynton Priestley‚ renowned author. He subtly portrayed his socialist political outlook in his play‚ through the manner of the characters‚ and the goings on at the time. Inspector Calls was written during World War 2 so the dampened attitude felt by people at the time‚ might have
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with Satan can be looked at in many different perspectives‚ and have many different reactions. When three young boys in the city of Eseldorf come across Satan‚ they particularly enjoy his presence‚ and his fantastical powers. In Mark Twain’s The Mysterious Stranger‚ the satirical elements portrayed are Dramatic Irony‚ Absurdity‚ and Fantasy‚ to mock the ignorance and insignificance of the human race; and not only that‚ but also to draw the attention of humans and help make most of their flaws clear
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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 *
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Assignment 1 Product Assessment The landline telephone is the service that I chose because it’s a service that is still on the market but is has declined to consumer appeal. Alexander Graham Bell invented and patented the first long distance landline telephone in 1876. It took 90 years after the first landline was installed to reach 100 million users worldwide. Although the landline has been around for a long time technology has improved over the years as well leaving the landline in the dust
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Call Centers Roshni N. Makwana Introduction A call centre is a centralised office used for the purpose of receiving and transmitting a large volume of requests by telephone. A call centre is operated by a company to administer incoming product support or information inquiries from consumers. Outgoing calls for telemarketing‚ clientele‚ product services‚ and debt collection are also made. In addition to a call centre‚ collective handling of letters‚ faxes‚ live chat
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