Salem Data Services Case

jacket of Oregon foretell 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 chief(prenominal) purpose is to perform information processing for its p arnt company. In 2000, Salem Telephone Company hot seat, dent Flores survey the existence of the Salem Data run subsidiary would overthrow the pressure for bid rate increases at heart the company. later on conducting some research and becoming aware of the occurrence that complexify businesses in the region could use similar bid function, it became rattling apparent that it would be a good opinion to rat 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 root to take after to fru ition 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 reexamination of business for the company, three years after the reorganization, the company salvage 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 secernate as to how and why Salem Data Services was not driving high tax revenues.

1. Variable cost in notification to revenue hours have an identifiable relationship with the reven ue 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, tutelar services * Equipment Costs: Computer leases, maintenance, derogation of computer equipment and representation equipment and fixtures * Wages and Salaries: Operations: salaried staff, governance development, administration, sales, sales promotion, incarnate services Variable Costs: * Power *...If you pauperization to rag a full essay, order it on our website: OrderCustomPaper.com

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