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.
Premium Computer Telephone Computer data
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
Premium Costs Variable cost
| 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
Premium Costs Variable cost Fixed cost
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
Premium Revenue Income statement Costs
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
Premium Cost Costs Contribution margin
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
Premium Variable cost Costs Total cost
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
Premium Revenue Income statement Costs
Summary Prestige Data Services is a subsidiary of Prestige Telephone Company‚ designed to perform data processing for the telephone company and also to sell computer services to other companies and organizations. The subsidiary started operations in 1995 and has yet to experience a profitable month and by the end of 1996 its income was low enough to necessitate a report to shareholders. Mrs. Bradley thinks the company just needs more time while Mr. Rowe feels it is time to reassess Prestige Data
Premium Variable cost Cost Costs
Prestige Telephone Company Scott Johnson‚ Nicole Phillips‚ Ashton Shuler‚ & Brandy Watts February 25th‚ 2014 Group Contributions Responded to all texts‚ discussion boards‚ and emails Participated in online chat and conference call Answered question 3 Provided the framework of how the case would be set up Suggested new ideas for later projects on how to discuss our topic Responded to all texts‚ discussion boards‚ and emails Participated in online chat and conference call Answered
Premium Variable cost Contribution margin Costs
1. Prestige Data Services apparently has not lived up to its parent company’s expectation. However‚ based on the numbers‚ the Prestige Data Services appears to be rather potential after just two years of performance. Its revenue hours sold to outside firms have being growing‚ and the majority of Prestige Data Services’ costs are fixed costs‚ e.g.‚ rent‚ custodial services‚ computer lease‚ maintenance‚ etc. In order to determine whether or not the subsidiary is indeed “too good to give up‚” two
Premium Variable cost Costs Fixed cost