Salem Data Services Case

majuscule of Oregon visit c onlyer-up Case capital of Oregon data service is a subsidiary of the capital of Oregon Telephone Company that is managed by Cynthia Wu. The companionships main purpose is to perform information processing for its p atomic number 18nt company. In 2000, Salem Telephone Company hot seat, beak Flores supposition the existence of the Salem Data run subsidiary would melt off the pressure for bid rate increases at heart the company. after conducting some research and becoming aware of the occurrence that mark businesses in the region could use similar telephony go, it became actually apparent that it would be a good opinion to betray ready reckoner time that was non needed by the telephone operations they were conducting. In Floress mind Salem Data operate could serve as competition with other computer service organizations while having non-regulatory prices. The only way for this root to sleep with to fruition was by making su re the monthly charges for services provided by Salem Data Services to Salem Telephone Company did not exceed the $82,000 mark. Through all of the recapitulation of business for the company, three years after the reorganization, the company equable was not as profitable as president Peter Flores estimated. Once the quarterly reports came in Flores called the meeting with Wu because the reports served as usher as to how and why Salem Data Services was not driving high receiptss.

1. Variable cost in apprisal to revenue hours have an identifiable relationship with the revenue hours that are listed. Whil e there is a relationship with inconstant c! osts and revenue hours, fixed costs stay the very(prenominal) regardless of revenue hours. Fixed be: * Space Costs include: rent, protective services * Equipment Costs: Computer leases, maintenance, derogation of computer equipment and division equipment and fixtures * Wages and Salaries: Operations: salaried staff, governance development, administration, sales, sales promotion, somatic services Variable Costs: * Power *...If you pauperization to get out a full essay, order it on our website: OrderCustomPaper.com

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