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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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
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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
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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. But
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Mobile Telephone System * First generation (1G) analog cellular network * Second generation (2G) digital cellular networks * Third generation (3G) broadband data services to the current state of the art * Fourth generation (4G) native-IP networks. 1G (or 1-G) refers to the first-generation of wireless telephone technology‚ mobile telecommunications. These are the analog telecommunications standards that were introduced in the 1980s. The main difference between two succeeding mobile
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Umbro | Parent Company | Nike Inc | Category | Apparel and Accessories | Sector | Lifestyle and Retail | Tagline/ Slogan | Go Out There; Tailored by | USP | English Football tailoring | STP | Segment | Apparel for athletics | Target Group | Athletes who play football | Positioning | Sportswear and football equipment brand | SWOT Analysis | Strength | 1. Presence in around 90 countries2. Enduring presence of 85 years in Manchester with launch of kits for them3. Strong management
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Chapter 6 Telephone Procedures Copyright © 2008 Delmar Learning. All rights reserved. Objectives • Review the learning and performance objectives for this chapter • By the end of this chapter‚ demonstrate the procedures in the textbook and the job skills in the workbook 2 Copyright © 2008 Delmar Learning. All rights reserved. Heart of the Health Care Professional • Service – The telephone becomes a lifeline to a patient calling in distress. 3 Copyright © 2008 Delmar Learning
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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 Services
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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
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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
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