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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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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Sales Fixed cost10 Sales promotion Fixed cost11 Corporate services Fixed cost11 1 The rent is a fixed cost because SDS has to pay the rent at Salem Telephone independent how many hours they are selling. That means even if SDS sell nothing the rent has to be paid. 2 The custodial services are fixed cost because they depend on Salem Telephone ’s estimated annual cost per square foot and so they are independent from the revenue of SDS. 3 The computer equipment is a fixed cost due to the fact
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PRESTIGE TELEPHONE COMPANY 1.Identify the costs that are relevant to the analysis to discontinue Prestige Data Services: Relevant costs in the analysis by Prestige Telephone Company decision to discontinue Prestige Data Services include: fixed costs which must be absorbed by the parent company (Prestige Telephone) upon shutdown; outstanding Prestige Data Services debts; costs of retraining retained employees; costs associated with outsourcing data services previously provided by Prestige Data
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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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William Plomer has written a fine article on not answering the telephone‚ in which he discusses the impact of telephone‚ typewriter and car on his mind. He used them reluctantly and was eager to avoid them as much as possible. When he often said he was not available on the telephone‚ people said it was inconvenient‚ unbelievable and foolish and called him mad. Plomer does not think that phone is essential because he can eat‚ breathe‚ sleep and play without it. It creates unnecessary anxiety‚ suspense
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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
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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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per revenue hour 3.) Create a contribution margin income statement for Salem Data Services. Assume that intracompany usage is 205 hours. Assume commercial usage is at the March level. Salem Data Services Contribution Income Total Per Unit Intracompany Sales (205) 82000 400 Commercial Sales (138) 110400 800 Variable Expenses (28.7 x 319.6) 9844 Contribution Margin 182556 Fixed Expenses 212939 Net Operating Income -30383 Intercompany Sales = 205 x 400 = 82000 Commercial
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Unit 7 Seminar Make-up Homicide is the killing of one human being by another. (Osterburg‚ J. 2014). Robbery is the act of robbing a person or place. (Osterburg‚ J. 2014). The crime scene assessment provides the major opportunity to locate physical evidence. The initial response should be regarded as the only chance to recognize‚ record‚ and collect physical evidence. The investigator must make the most of it. This search‚ however‚ must be conducted properly and lawfully‚ or the evidence will be
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