Prestige Telephone Company Case Study Solution Case Study Analysis

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    Salem Telephone Case Study

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    Salem Telephone Case Study

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    Salem Telephone Company Case Study

    be profitable subsidiary for the parent company, Salem Telephone Company. Salem Data Services would perform data processing for Salem Telephone Company as well as sell computer services to other firms. Flores stood by the idea that the subsidiary would lower Salem Telephone Company’s need of increasing telephone rates. Salem Data Services struggled to become a profitable institution after two years of operation. In the recent year, Salem Telephone Company produced the lowest return on investment

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    Salem Telephone Case Study

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    internal environment of the company. The major strength was that it is a massive database. Another strength that stood out was how in-depth the information about customer preference there was which is to create a good relationship with the customers and to continue establishing their changing needs and wants. I also thought a strength in Meredith’s company that they can sell research for profit. The main weaknesses in the marketing information system is that the company growth depends on customer

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    Salem Telephone Company Case Study

    hours. All other costs are fixed with respect to revenue hours. With higher fixed cost, Salem Data Services has a higher leverage and is therefore riskier. 2. ($7,896 + $1,546) / 329 hours = $28.70 / hour. For every hour spent working, the company spends 28.70 dollars. 3. Intracompany Commercial Total Number of Hours (a): 205 138 343 Revenue (a x b): $82,000 $110,400 $192,400 Variable Costs (a x c): ($5,883.50) ($3,960.60) ($9,844.10) Contribution Margin: $76,116

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    amongst employees: The prevailing unemployment and the plight of the unemployed people and their families may create fear and insecurity even in the currently employed people. * Crime and violence: Increase in the rate of crime. * Suicide cases: Increase in the rate of suicide attempts and actual suicides as well. * Social outing: Unemployment may bring a decrease in social outings and interactions with other people, including friends. * Standard of living: In times of unemployment

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    Salem Telephone Company Case Study

    James Whittle Salem Telephone Company Case Study 9/29/2014 1.) The variable costs in Exhibit 2 are Power and Hourly Personnel Wages as the costs fluctuate from month to month and are driven by the revenue hours for the company. The fixed costs in Exhibit 2 are Rent, Custodial Services, Computer Equipment Leases, Computer Maintenance, Computer Depreciation, Office Equipment and Fixtures Depreciation, Salaried Staff Wages, Systems Development and Maintenance, Administrative Wages, Sales Wages

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