1.) VARIABLE EXPENSES - Power - Operations (hourly personnel) FIXED EXPENSES - Rent - Custodial services - Computer leases - Maintenance - Depreciation - Operations (salaried staff) - Systems development and maintenance - Administration - Sales - Sales promotion - Corporate services 2.) VARIABLE EXPENSES: COST/HOUR JAN. FEB. MAR. Power: 4.7 4.7 4.7 Operations (hourly personnel): 24 24 24 TOTAL: 28.7 28.7 28.7 3.) CONTRIBUTION MARGIN INCOME STATEMENT
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Winning Hearts and Minds in War of Plagiarism Summary In Scott Jaschiks’ book titled “Winning Hearts and Minds in War on Plagiarism‚” Jaschik describes the issue of first-year English students plagiarizing work and the numerous faculty members’ solutions to solve plagiarizing. Teachers‚ like North Carolina State University professor Kate Hagopian‚ are working with first-year English students to teach students academic integrity and to understand why students plagiarize. Teachers have
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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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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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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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suggestion to close SDS instead of keeping it. However‚ if they close SDS‚ the change in their net income will be: Exhibit 5 They will save costs in maintenance‚ power‚ and so on‚ but they will lose the rent profit $8‚000 if there is no other company rents that floor. Besides‚ they need to outsource and the outsourcing cost will be 205 hours * $800 per hour = $164‚000. Therefore‚ as it is shown in Exhibit 5‚ their extra cost of closing SDS will be $94‚356. If they don’t rent the place to other
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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? a. Variable Expenses – Wages for Hourly Personnel‚ Power b. Fixed Expenses – Wages for Salaried staff‚ Systems development and maintenance‚ Administration 2. For each expense that is variable with respect to revenue hours‚ calculate the cost per revenue hour.
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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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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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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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