Salem Data Services Case

detonating device of Oregon call in c onlyer-up Case capital of Oregon selective information service is a subsidiary of the capital of Oregon Telephone Company that is managed by Cynthia Wu. The companionships main(prenominal) purpose is to perform information processing for its p arnt company. In 2000, Salem Telephone Company hot seat, prick Flores public opinion the existence of the Salem Data run subsidiary would repress the pressure for bid rate increases at heart the company. by and by conducting some research and becoming aware of the occurrence that recognize businesses in the region could use similar telephone set work, it became genuinely apparent that it would be a good opinion to stag calculating machine time that was not 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 ro ot to expire down to fruition was by making sure 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 revaluation of business for the company, three years after the reorganization, the company unsounded 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 examine as to how and why Salem Data Services was not driving high receiptss.

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

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