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
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Case Study – Prestige Telephone Co. Company Profile Prestige Data Services is a subsidiary of Prestige Telephone Company‚ a public utility. They are a computer data service company that does data processing for the parent company in order to sell computer services. The company was opened in order to bring in additional revenue in order to offset increases in telephone rate increases. Throughout the three years of being
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Case Study Prestige Telephone Co. CLASSIFICATION OF COSTS Jan Fixed costs: Space rent Custodial services Computer leases Maintenance Depreciation Power Wages: Operations Systems development Admnistration Sales Sales promotions Total fixed costs I Corporate services Total fixed costs II Variable cost per hour: Power Wages operations Materials Variable unit cost per hour 8.000 1.240 95.000 5.400 26.180 Feb 8.000 1.240 95.000 5.400 26.180 Mar 8.000 1.240 95.000 5.400 26.180 Average 8.000 1.240
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The current situation of Prestige Data Service revealed a few problems‚ which had mis-presented the performance of Prestige Data Service and misled the manager’s decision making. First of all‚ the current accounting report did not reveal the real contribution made by Prestige Data Service to its parent company. According to the restriction of the state Public Service Commission‚ the average monthly charge for service by the subsidiary to the parent not exceed $82‚000; therefore the intercompany
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Case Study : Prestige Telephone Company Background of Case Study In April 1997‚ president of Prestige Telephone Company (PTC)‚ Daniel Rowe‚ was making arrangements to meet with its computer data service subsidiary Prestige Data Services’ (henceforth PDS) manager Susan Bradley. This subsidiary performs data processing for the telephone company and sells computer services to other companies. In 1994‚ Rowe suggested that productive computer services subsidiary will decrease the telephone rate rise’s
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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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Estimate the effect on income of each of the options Rowe has suggested if Bradley estimates as follows: a. Increasing the price to commercial customers to $1‚000 per hour would reduce demand by 30 %. Ans : - It is common to business manager in a business unit to adjust different variables (fixed cost‚ variable cost and price strategy) to maximize the bottom-line or top-line to either maximize profit or minimize the operation cost. Provided the data as below‚ 3 variable costs indentified‚ they
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(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‚ its income was low enough to necessitate
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The Income Statement This indicates financial performance over a period of time. It is usually done at the end of a financial year (30th June)‚ but an income statement can be made up at other times‚ e.g.‚ if a business wishes to apply for a loan‚ the bank may ask for a more recent income statement. The other names for this kind of statement are Revenue Statement and Profit and Loss Statement. Income Statement for Ima Mess‚ year ended 30.6.12 |
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Salem Telephone Company-Case Study Peter Flores‚ President of Salem Telephone Company‚ believes that a computer subsidiary company (Salem Data Services) appears to be unprofitable. And because of this‚ he must decide and determine whether it is actually unprofitable and consider whether changes in prices or promotion might improve profitability by using the Break-Even point analysis. But before we come out to any solutions‚ we must discuss Salem Data Services accounting report
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