Salem Telephone Co Case Solution

Salem Telephone Co Case Solution

Salem Telephone Co Case Solution

Salem Telephone Co Case Solution

A computer subsidiary seems to be unsuccessful. Managers are to decide if it is rations in the pricing strategy or marketing will help increase the viability of the subsidiary. Provides a distinct difference between variable and fixed costs.A redrafted account of a previous case.

Excel Calculations

Caculating Variable Costs per Revenue Hour

Calculating Contribution Margin

Calculating Current Net Income

Calculating Break Even using Goal Seek

Maximum amount that can be spent on Sales Promotion while keeping net income above zero

Total Costs of Closing SDS

Total Expenses Saved of closing SDS

Calculation of Percentage unused hours

Questions Covered

1. Which costs of Salem Data Services are fixed and which are variable?  Make a list of each.

2. For each expense that is variable with respect to revenue hours, calculate the variable cost per revenue hour.

3. Compute a contribution margin per hour of revenue using 205 hours of intra-company usage plus commercial usage at the March level.  Based on this analysis, how many commercial hours does Salem Data need to sell in order to finally break even?

4. On page 3 of the case, look at question 5 and compute the effect on income of each of the options that Flores is suggesting to Wu as possible strategic alternatives.

5. Is Salem Data Services really a problem to Flores and Salem Telephone Company?  Should Flores insist on any of the suggested options or just be more patient for Salem Data Services to get into the black?

Share:

Keywords: salem telephone co case solution

Comments

Other related blogs

Treasure point Palawan

By : Treasure Point Palawan

Palawan is probably one of the most beautiful islands in the world which has remained secluded from ..


Rick Lee Crosby Jr: The Man who believe in humanity

By : Rick Lee Crosby Jr

Rick Lee Crosby Jr a man more than just normal human beings. He has done a lot and achieved a lot of..


Divorce Attorney Orange County, CA: Handles the dissolutions of marriages for their clients

By : Digital Market

A Family Law Attorney in Orange County, CA can perform a variety of services that you need to protec..


JayaSriLanka.Net Sinhala Mp3 Friends Club Live Show Dj Remix Video Sinhala Sindu

By : Jaya SriLanka

With the advent of the internet, you can actually learn music online on your own and at the comforts..