| 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
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Riverbend Telephone Company has determined that they need a new maintenance truck and crew. Looking at the options they obtained 4 bids from truck dealers. They are expecting the truck to have a working life of five years. We looked at both options and believe that purchasing a new truck is the most cost effective when looking at keeping the truck for five years. The best offer for a lease is $7‚200 a year with a total present value of $36‚000. The best offer for purchasing a truck is $24
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Through our study of Salem Telephone Company (STC)‚ we’re going to analyze whether or not Salem Data Services (SDS) will be a profitable business to keep. We will do so by utilizing break even analysis. Before we can find our solution‚ we should discuss Salem Data Services’ (SDS) accounting report step by step. To begin‚ the various costs incurred to SDS should be grouped into either variable‚ or fixed. The only variable costs that have any relation to the total revenue hours listed from exhibit
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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
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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
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The Prestige Telephone Company 2- Assume that the total expenses are around the average of $ 231‚000. (By observing first three months’ results) If the total expenses are $ 231‚000 than the total revenue should be $ 231‚000 at the Break-Even Point. On the other hand if the company demand for service will be 205 hours ‚ which means company sales revenue will be $ 82‚000 (as the Public Service Commission’s restrictions says)‚ and the other revenues in the commercial sales assume that around
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calculated as 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 $ 82‚000 21‚438 9‚240 15‚236 78‚962 Service fee paid to Prestige Data Service Net Loss in March Fee paid by Prestige Data Service B To close down Prestige Data Service‚ Prestige Telephone will incurre: Expense Sunk Cost Total Expense 178‚400 4‚560‚000 $ 4
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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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Group 2 (Bleaser; Humbles; Pennington; Robin; McLamb) Case Study Salem Telephone Company The purpose of creating the subsidiary is twofold: (1) to keep telephone customers from having rate increases and (2) for Salem Telephone to plan‚ control and make decisions on performance of its operations in the area served. Planning would involve a financial budget and the level of profit needed. Control would be the measurement and comparison of actual to estimated budget analysis of management’s
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Clyde would not have more discretion in the recording of his bartering exchange. First of all‚ he could not make up his fair value. There are certain rules that you must follow with FASB. The fair value is consisting of measurements and how accurate it is. According to paragraph 505-50-30-02‚ “Paragraph 505-50-30-6 establishes that share-based payment transactions with nonemployees shall be measured at the fair value of the consideration received or the fair value of the equity instruments issued
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