HBS case – Salem Telephone Company Opening In 2000 the Public Service Commission (PSC) was informed by the president of Salem Telephone Company (STC) that a profitable computer service subsidiary would reduce pressure for increases to telephone rates. With approval from the Public Service Commission‚ STC‚ a regulated public utility‚ established Salem Data Services (SDS) in 2001‚ an unregulated public utility to perform data processing for the telephone company and additionally to sell computer
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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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Salem Telephone Company 1. With respect to the revenue hours the expenses‚ power and operations: hourly personnel are the variable expenses. Rent‚ custodial services‚ Computer leases‚ Maintenance‚ Depreciation‚ Salaried staff‚ administration‚ sales‚ sales promotions‚ corporate services and systems development and maintenance expenses can be treated as fixed costs. 2. Costs per revenue hours for the Variable expenses power and operations hourly personnel are as follows Expenses | Jan
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Telephone Conversation‚ by Wole Soyinka is about racism; more specifically‚ it is about the way people both white and black fail to communicate clearly about matters of race. The narrator of the poem describes a telephone conversation in which he reaches a deal with a landlady to rent an apartment. He feels that he must let her know that he is black: Nothing remained But self-confession. "Madam‚" I warned‚"I hate a wasted journey—I am African." This is where the lapses in communication begin.
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that about 39% of the computer utilization hours is far under full utilization. Furthermore‚ the costing approaches seemed not fair to subsidiary company according to its quarterly report. For example‚ the Prestige Data Services paid Prestige Telephone the corporate service based on wages and salaries each month. Those service were done by parent company personnel‚ it should be charged as monthly wages but a per hour expenses. Moreover‚ a charge for custodial service was paid by Data Service which
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The Nigerian poet Wole Soyinka uses the poem the telephone conversation to express the apathy one‚ particularly the black has‚ against Apartheid. Through an ironical dialogue over the telephone the poet criticizes the strong feeling of hatred that has arisen due to racial discrimination. The poem starts on a mild note where the poet negotiates the renting of an apartment with the landlady over the telephone. They were agreeable on the ‘price’ the ‘location’ and privacy. The price was ‘reasonable’
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Salem Telephone Company ("STC") Question 1 Variable Costs Equipment costs: Power Wages and Salaries: Operations hourly personnel Fixed Costs Space costs: Rent‚ custodial services Equipment costs: Computer leases‚ maintenance‚ depreciation of computer equipment and office equipment / fixtures Wages and Salaries: Operations salaried staff‚ systems development and maintenance‚ administration‚ and sales Sales promotions Corporate services The group actively debated fixed
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How is Prejudice Explored in the Poems ’Still I Rise’ and ’Telephone Conversation’? ’Telephone Conversation’ by Wole Soyinka and ’Still I Rise’ by Maya Angelou tackle the social injustice of discrimination. Both poems lack in similarities‚ the only one being theme‚ yet possess an abundance of differences. Although both poems convey the same theme‚ they differ in their means of conveyance. For instance they both explore prejudice and discrimination but through different types of language‚ imagery
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Salem Telephone Company – Salem Data Services Dear Mr. Flores‚ The objective of our engagement was to analyze Salem Data Services’ (SDS) operations to determine if this is a viable business with potential for growth and future profit or whether the business is likely to remain unprofitable and should be divested. A review of Salem Data Services’ utilization metrics for the first quarter of 2004 has helped us pinpoint the crux of SDS’s unprofitability over this three month span. Underutilization
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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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