Prestige Telephone Company

  • Premium Essay

    Prestige Company

    PRESTIGE TELEPHONE COMPANY . Assignment The purpose of this case is to give you an opportunity to exercise your CVP analysis skills in a mixed non-profit/profit service context. As the controller of Prestige Telephone Company, you have been asked for an analyses of the 1997 first-quarter operating results for Prestige Data Services (a fully-owned subsidiary) and possible alternative courses of action to improve performance of Prestige Data in the future. Write a memo to Mr. Rowe (President

    Words: 984 - Pages: 4

  • Premium Essay

    Prestige

    Introduction * Pestige Data Services (PDS) was a subsidiary of PrestigeTelephone (PT) Company.PDS -Data processing for the telephone companies & soldcomputer services to other companies. * Yet to experience profit. * Manager -More time required for business to become profitable. * President -Reduce the drain in company resources. Objectives * Analyze the results of operations. * Understand the economics of a business. * Forecast the potential change in income

    Words: 667 - Pages: 3

  • Free Essay

    Telephone Market

    being significant in their own country or sub region, but lacking Global wide presence. Several ODM and OEM providers also achieve significant share of total sales through their provision of cordless telephones to many of the major brands, incumbent service providers and retail chains, these companies include VTECH, SGW Europe, Gigaset Communications, Uniden and CCT (partial list). About this Release The information contained in this Research Release forms an extract from MZA’s 2009 Competitive

    Words: 855 - Pages: 4

  • Free Essay

    Telephone Survey

    Pre-assignment Telephone survey for John’s sandwich and wrap Introduction Hello, I am a member of John ‘sandwich and wrap. I want to ask you to improve our service to fully meet your expectations. The survey is quick and will not take more than 2 min. Do you agree? Y/N 1) Do you know john’s sandwich? Y/N 2) Do you go to John’s sandwich ?Y/N 3) How often do you eat at john's monthly? 4) What is the distance between your home the store you're going?(localization)

    Words: 286 - Pages: 2

  • Premium Essay

    Salem Telephone

    Salem Telephone Company – Case Study Summary In 2001 Salem Telephone established a subsidiary, Salem Data Services, for the purpose of performing data processing services for the telephone company and to meet this need for other companies. By 2003 Salem Data Service had finally overcome the problems experienced during startup and was running smoothly but their reporting had yet to show a profitable month. Peter Flores, president of Salem Telephone Company was discouraged by the presented results

    Words: 1223 - Pages: 5

  • Premium Essay

    Prestige Company

    Q1 In the first quarter of 2003, Prestige Data Services (PDS), a strategic subsidiary of Prestige Telephone, is showing a net loss of $75K. Their monthly revenues for the quarter have varied from $189K to $212K and their expenses have remained relatively flat around $222K each month. Table 1: High Level Q1 2003 Financials It might appear that the data subsidiary is continuing to lose money and should be considered as a candidate for elimination. However, that is NOT the case. The financials

    Words: 760 - Pages: 4

  • Premium Essay

    Prestige Telephone Company

    McDermott Company Method of Least Squares McDermott Company is developing a cost formula for its packing activity. Discussion with the workers in the packing department has revealed that packing costs are associated with the number of customer orders, the size of the orders, and the relative fragility of the items (more fragile items must be specially wrapped in bubble wrap and Styrofoam). Data for the past 20 months have been gathered: |Month |Packing Cost |Number of

    Words: 344 - Pages: 2

  • Premium Essay

    Salem Telephone Company

    Managerial Accounting Salem Telephone Company Question 1 Fixed Expenses: * Rent * Custodial services * Computer leases * Maintenance * Computer equipment * Office equipment and fixtures * Salaried staff * Systems development and maintenance * Administration * Sales * Sales promotion * Corporate services * Variable Expenses: * Power * Hourly personnel Question 2 Question 3: Income Statement Date | March | Revenues |

    Words: 625 - Pages: 3

  • Premium Essay

    Salem Telephone Company

    7=28.7 February   1485/316=4.7 7584/316=24 =4.7+24=28.7 March 1697/361=4.7 8664/361=24 =24+4.7=28.7 3.  Create a contribution margin income statement for Salem Data Services; Assume that intra company usage is 205 hours, Assume commercial usage is at the March Level. Revenue Variable costs Contribution Margin Fixed Costs Operating Income (loss) From the case we know that intracompany work was billed at $400 per hour, and commercial sales

    Words: 503 - Pages: 3

  • Premium Essay

    Bt Telephone

    BT Telephone Case 1. What are the issues that evolve as a result of privatization? * Introduction of domestic competition – refocusing of activities * Reforms prepared BT for 3 main challenges: * Regulatory barriers to international competition expected to breakdown * Companies internationalized, they might prefer to deal with single worldwide telecommunications service companies. Tailored less neatly to specifically defined geographic areas * Increased international

    Words: 502 - Pages: 3

  • Free Essay

    Telephone

    Accawi is not greatly happy about the telephone that has been taking away his whole family, according to “Finally the telephone took my family away, too”.(Accawi 47) The word finally in the paragraph here represents even Accawi is reluctant, he know that he cannot change anything about the telephone change his village. Telephone is something show people who lives in the village that senese of time is important. According to “Before the telephone came to Magdaluna, Im kaleem’s house was bustling

    Words: 329 - Pages: 2

  • Premium Essay

    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

    Words: 654 - Pages: 3

  • Premium Essay

    Prestige Company Case

    sell a subsidiary company, we should consider the benefits and disadvantages of each option. We gauge the contribution of a subsidiary not only by looking at its profitability but also the advantage it can give to the parent company particularly in reducing its costs. Having a low profitability or even a net loss does not necessarily mean that the decision of retaining the subsidiary is wrong. Separating the relevant costs from the irrelevant costs helps the parent company determine how the subsidiary

    Words: 303 - Pages: 2

  • Free Essay

    History of the Telephone

    History of the Telephone - The earliest telephones were basically pipes that transmitted sound. This idea originated from China. (4) - Next were the two diaphragms with a string or wire connected them in the middle. (4) - In 1809 Samuel Thomas von Soemmering constructed his electrochemical telegraph. (4) - Baron Schilling created an electromagnetic telegraph in 1832.4 - Then in 1837, the electrical telegraph was invented by Samuel Morse. (4) - French inventor Charles Bourseul proposed

    Words: 326 - Pages: 2

  • Premium Essay

    The Modern Telephone

    22 July 2009 The Modern Telephone In today’s society, instant communication seems to be the norm. I’ve had a cellular phone for the past fifteen years, and cannot see myself without one in the future. It is almost like I cannot live without one. I, like a lot of other people, have chosen not to have a regular land line telephone in my home, simply because I can be reached at home or away on my cellular phone. Everyone seems to have cellular phones, even though there seem to be drawbacks to

    Words: 414 - Pages: 2

  • Free Essay

    Prestige Telephone Company

    Chapitre 2 La diversité dans les organisations Dans ce chapitre , nous observerons de quelle manière les organisations s’efforcent d’exploiter au maximum les contributions potentielles d’un effectif diversifié . Nous montrerons aussi comment les caractéristiques démographiques , telles que l’appartenance ethnique et les différences individuelles en termes de compétences , influencent les performances et la satisfaction de l’employé . 1. La diversité La diversité est devenue en quelques

    Words: 816 - Pages: 4

  • Premium Essay

    Prestige

    1. Prestige Data Services is quite a problem to Prestige Telephone.This is because as it can be seen from the data, the Prestige Data Services is spending more than it is earning as it can be derived from the difference between total expenditure and total revenue. Further, the period that it had been allocated to prove profitable had already been exceeded and no worthy results were available which means even if the subsidiary was added more time little progress could be made. This is supported by

    Words: 425 - Pages: 2

  • Premium Essay

    Prestige Telephone

    Case Study – Prestige Telephone Co. Company Profile Prestige Data Services is a subsidiary of Prestige Telephone Company, a public utility. They are a computer data service company that does data processing for the parent company in order to sell computer services. The company was opened in order to bring in additional revenue in order to offset increases in telephone rate increases. Throughout the three years of being in operation the subsidiary has been unprofitable. Case Question #1 Assuming

    Words: 670 - Pages: 3

  • Premium Essay

    Salem Telephone

    Managerial Accounting Case Study 1: Salem Telephone Company 96122050 96122051 96122052 96122073 96122085 96122088 96122092 Group 1 Through our study of Salem Telephone Company (STC), we’re going to answer that if Salem Data Services (SDS) is really a profitable business to keep by using break-even point analysis. Before we come out the final solution, let’s discuss SDS’ accounting report step by step. First, we have to divide the various costs incurred in SDS into two types: variable costs

    Words: 778 - Pages: 4

  • Premium Essay

    Salem Telephone

    Salem Telephone Company Managerial Accounting Case Study 1: Salem Telephone Company 96122050 96122051 96122052 96122073 96122085 96122088 96122092 Group 1 Through our study of Salem Telephone Company (STC), we’re going to answer that if Salem Data Services (SDS) is really a profitable business to keep by using break-even point analysis. Before we come out the final solution, let’s discuss SDS’ accounting report step by step. First, we have to divide the various costs incurred in SDS into two

    Words: 340 - Pages: 2

  • Premium Essay

    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

    Words: 430 - Pages: 2

  • Premium Essay

    Prestige Telephone Company

    PRESTIGE TELEPHONE COMPANY In deciding whether to continue, discontinue or sell a subsidiary company, we should consider the benefits and disadvantages of each option. We gauge the contribution of a subsidiary not only by looking at its profitability but also the advantage it can give to the parent company particularly in reducing its costs. Having a low profitability or even a net loss does not necessarily mean that the decision of retaining the subsidiary is wrong. Separating the relevant

    Words: 391 - Pages: 2

  • Premium Essay

    Prestige Telephone Company

    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

    Words: 2725 - Pages: 11

  • Premium Essay

    Salem Telephone

    SUMMARY Salem Telephone Company operates as a regulated public utility. The state Public Service Commission (PSC) permitted Salem to establish a wholly owned subsidiary to provide computer services to other companies for a profit. The reason for the separate entities was so Salem Data Services could sell services unregulated and Salem Telephone could operate without raising rates. In 2000, the initial report to the PSC from the president of Salem Telephone was to convince them that

    Words: 773 - Pages: 4

  • Premium Essay

    Salem Telephone Company Case Study

    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

    Words: 905 - Pages: 4

  • Premium Essay

    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

    Words: 806 - Pages: 4

  • Premium Essay

    Salem Telephone Company

    Salem Telephone Company 1.Variable Cost: Power, Operations: hourly personnel. Fixed Cost: Space cost-rent, Custodial services, Computer leases, Maintenance, Computer equipment depreciation, Office equipment and fixtures depreciation, Operations: salaried staff, systems development and maintenance, Administration, sales, sales promotion, Corporate services. 2. Cost per revenue hour=Cost/revenue hour Power: January: 1546/329=4.6991 February:

    Words: 753 - Pages: 4

  • Premium Essay

    Written Analysis of the Case - Prestige Company

    I. SUMMARY OF THE CASE Prestige Telephone Company is a public utility business. Since it is operated as a public utility, it is subject to the regulations of the Public Service Commission, as such, the rates charged by Prestige Telephone Company for telephone service could not be changed without the approval of the Public Service Commission. The state Public Service Commission had encouraged all public utilities under its jurisdiction to seek new sources of revenue and profits as a step toward deregulation

    Words: 2160 - Pages: 9

  • Premium Essay

    Prestige Phone

    Prestige Telephone- Case #2 1. I would present an alternative accounting statement to Prestige Data Services by adjusting the net income due to the fixed expenses of rent and custodial services that are provided in the original Prestige Data Services Summary Results of Operations, First Quarter 2003. Although it appears that the company is suffering great losses, it is necessary to remove the fixed, sunk costs in order to get the adjusted net income. These sunk costs are costless to Prestige Telephone

    Words: 371 - Pages: 2

  • Premium Essay

    Prestige Telephone Company

    Prestige Telephone Company Question 1: Appraise the results of operations of Prestige Data Services (PDS). Is the subsidiary really a problem to Prestige Telephone Company (PTC)? Consider carefully the differences between the reported costs and costs relevant for decisions that Daniel Rowe is considering. The current data indicate that the PDS is in operating loss. And going by the presented data, yes, PDS is a problem to PTC at this point of time. And this in spite of many major costs being

    Words: 764 - Pages: 4

  • Premium Essay

    Salem Telephone Company

    Salem Telephone Company • • • • C.V. Hareesh Naidu V.Venkata Surya Teja B. Asheesh Kumar M. Rohit Kumar 186 168 032 Salem Telephone Company • Subsidiary : Salem Data Services • Data processing service provider for the telephone company. • Sell computer services to other companies. • Initially started to reduce telephone rate hikes. • Currently running in losses • Mr. Flores wished to have a wholly owned entity rather than a public utility company. • Average monthly charge for services by the

    Words: 453 - Pages: 2

  • Premium Essay

    Salem Telephone Company

    Salem Telephone Company • • • • C.V. Hareesh Naidu V.Venkata Surya Teja B. Asheesh Kumar M. Rohit Kumar 186 168 032 Salem Telephone Company • Subsidiary : Salem Data Services • Data processing service provider for the telephone company. • Sell computer services to other companies. • Initially started to reduce telephone rate hikes. • Currently running in losses • Mr. Flores wished to have a wholly owned entity rather than a public utility company. • Average monthly charge

    Words: 453 - Pages: 2

  • Free Essay

    Telephone Messages

    Telephone Messages Communication is a very important aspect of our day today activities.The most widely used type of voice commmunication is the use of telephones.The use of telephones in communication is effective,efficient and reliable.It is from this aspect of telephone wide range of usage that we have the use of telephone messages. Telephones are the most widely used communication asset in organizations and other institutions.They are also widely used at home. People have different intentions

    Words: 352 - Pages: 2

  • Free Essay

    Telephone Systems

    management. Phone Features The ROLM 9751 PBX is a computer controlled phone system designed by Rolm that has some unique phone features. A few of the unique features according to the website for the phones used [ (Rolm Phone User Guide - Online ROLM Telephone Feature Guide / Reference / Handbook, (n.d.)) ] are do not disturb (DND) this allowed the user to stop all incoming calls and have incoming calls follow forwarding instructions as set for the feature. Another unique feature is camp in which a user

    Words: 1394 - Pages: 6

  • Free Essay

    Prestige Telephone Company

    Prestige Telephone Company En su análisis del caso, asumir lo siguiente: 1. Los gastos de promoción para los próximos meses están programados para $8,000. 2. Los valores de las cuentas: “Ventas por otros conceptos” y “Gastos de materiales y suministros” se compensarán aproxima Cuestiones 1. Valorar el resultado de las operaciones de Prestige Data Services. ¿Es realmente la subsidiaria un problema para Prestige Telephone Company? Considerar detenidamente las diferencias entre los costes

    Words: 538 - Pages: 3

  • Premium Essay

    Salem Telephone Company

    Case Study #1. Salem Telephone Company 1. Variable expenses: Power (the more hours sold, the more energy consumed) The hourly personnel (operations) works only when the computers are in operation Fixed expenses: The rent has to be paid despite any level of production ($8,000 monthly) The custodial services depend on Salem Telephone's estimated space, they are independent from the revenue of the Company The computer leases were acquired to run the business (before it was actually started

    Words: 901 - Pages: 4

  • Premium Essay

    The Prestige

    The Prestige (2006) Christopher Nolan The Prestige is a movie that shows the rivalry between magicians Alfred “The Professor” Borden and Robert “The Great Danton” Angier. Their struggle is expressed through class warfare: Borden as The Professor, a working-class magician who gets his hands dirty, versus Angier as The Great Danton, a classy, superior showman whose accent makes him appear American. Obsession, secrecy, and sacrifice increase the battle, as both magicians contribute their fair share

    Words: 1885 - Pages: 8

  • Free Essay

    Telephone Network

    Public switched telephone network The public switched telephone network (PSTN) is one of the world's public circuit-switched telephone networks. Originally PSTN is a network of fixed-line analogue telephone systems. Today, the PSTN is totally digital in its core and also includes mobile along with fixed (plain old telephone service, POTS) telephones. Early History The first telephones were in private use, had no network and were wired together in pairs. If a user wanted to talk to different people

    Words: 514 - Pages: 3

  • Premium Essay

    Prestige

    results of operations of Prestige Data Service. Is the subsidiary really a problem to Prestige Telephone Company? Consider carefully the differences between reported costs and cost relevant for decisions that Daniel Rowe is considering. 1.The prestige Data Services grew from the needs of the Prestige Telephone Company to meet their needs of data handling at the time but the problem now is that the company is still operating at a loss. But is that a problem for the parent company? We do not think so,

    Words: 690 - Pages: 3

  • Premium Essay

    Case Prestige

    CASE BACKGROUND • Prestige Telephone Company (PTC) is the parent company of Prestige Data Services (PDS) • PDS provides data services to its parent company as well as other companies willing to hire its services • It is wholly owned by PTC, but runs as a separate business entity, so each pays the other for services received • It was conceptualized in 1994, and started operations in 1995 • Daniel Rowe, president of PTC, was the one who pitched PDS, and believes it could

    Words: 1364 - Pages: 6

  • Premium Essay

    Prestige Telephone

    Prestige Telephone Company case study In 1999, the Government encouraged public utilities to seek new sources of revenues and profits to reduce the need for rate increases to consumers of telephone services. Prestige Telephone Co. (PTC) considered that a centralised data provider service could be a profitable use of excess hours from existing infrastructure. Prestige Data Services (PDS) performed data processing for the telephone company and sold computer services to other companies and

    Words: 368 - Pages: 2

  • Free Essay

    The History of the Telephone

    The History of the Telephone - Alexander Graham Bell Alexander Graham Bell - Brief Biography Born on March 3, 1847, in Edinburgh, Scotland, Alexander Graham Bell was the son and grandson of authorities in elocution and the correction of speech. Educated to pursue a career in the same specialty, his knowledge of the nature of sound led him not only to teach the deaf, but also to invent the telephone. In the 1870s, two inventors Elisha Gray and Alexander Graham Bell both independently designed

    Words: 1657 - Pages: 7

  • Premium Essay

    Telephone Conversation

    looks too busy anyway. B. Mmmm. A. I'm not very keen on the décor in here, are you? Although the complaints are directed to the restaurant, B gets the impression that A would rather not be there at all, and by implication, not be in his company. Finding things to praise-no matter how difficult-is more likely to lead to enjoyable conversation. But neither should we, however, be excessively apologetic-except of course, when you really have said or done something to offend another person.

    Words: 2050 - Pages: 9

  • Premium Essay

    Prestige Investments

    I, XXX, certify that: 1. I have reviewed this annual report on Form 10-K of "Prestige Investments"; 2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report; 3. Based on my knowledge, the financial statements, and other financial information

    Words: 397 - Pages: 2

  • Free Essay

    Telephone

    Qui saurait de nos jours se passer du fameux téléphone? Nous devons cette merveilleuse invention à Alexandre Graham Bell. Durant cette présentation, nous allons vous parler de ce personnage qui a changé l’histoire de la communication. Alexandre Graham Bell est né le 3 mars 1847 à Édimbourg en Écosse. Il devient citoyen Canadien en 1882. Il avait deux frères : Melvin James Bell et Edward Charles Bell. Tous deux morts de la tuberculose. À sa naissance, Bell n’avait pas encore de deuxième prénom

    Words: 893 - Pages: 4

  • Premium Essay

    Salem Telephone Company

    Salem Telephone Company SUMMARY: Peter Flores, President of Salem Telephone Company decided to create a subsidiary in the form of an unregulated data services company called Salem Data Services in 2000. Flores belief was that with the company unregulated it would become a profitable business and prevent the need, in the future, to increase phone rates due to increasing costs at Salem Telephone. Originally the company only provided intra-company services for Salem Telephone, however

    Words: 1179 - Pages: 5

  • Free Essay

    Telephone Marketing

    surrounding telephone marketing can never be over analysed. There are many factors which influenced the development of telephone marketing. Cited by many as the single most important influence on post modern micro eco compartmentalism, telephone marketing is featuring more and more in the ideals of the young and upwardly mobile. Inevitably feelings run deep amongst the aristocracy, trapped by their infamous history. Relax, sit back and gasp as I display the rich tapestries of telephone marketing.

    Words: 416 - Pages: 2

  • Premium Essay

    Prestige Telephone

    Prestige Data Services Cost Volume Profit Analysis The following equation has been used for the purpose of this analysis: (Intra-company sales + commercial sales) = Fixed Cost + Variable Cost/hour * time (in hours) To work out only the contribution of intra-company and commercial computer use, “Other commercial sales” has been removed from the revenue. To counter that, “Materials cost” has been removed from the costs; three month average for these parameters is approximately equal. Fixed Costs

    Words: 950 - Pages: 4

  • Premium Essay

    Prestige Telephone Company

    Prestige Data Services Cost Volume Profit Analysis The following equation has been used for the purpose of this analysis: (Intra-company sales + commercial sales) = Fixed Cost + Variable Cost/hour * time (in hours) To work out only the contribution of intra-company and commercial computer use, “Other commercial sales” has been removed from the revenue. To counter that, “Materials cost” has been removed from the costs; three month average for these parameters is approximately equal. Fixed Costs

    Words: 302 - Pages: 2

  • Premium Essay

    Salem Telephone Company Accounting Analysis

    Salem Telephone Company 1. In Exhibit 2, expenses fixed relative to revenue hours are: Rent, Custodial services, Computer leases, Maintenance, Computer equipment, Office equipment and fixtures, Operations: salaried staff, Systems development and maintenance, Administration, Sales, Sales promotion, and Corporate services. Expenses that are variable relative to revenue hours: Power, Operations: hourly personnel. 2. Power: $4.70 per revenue hour Operations (hourly personnel): $24.00 per revenue

    Words: 251 - Pages: 2

+
-