Salem Data Services Case

large(p) of Oregon ring c onlyer-up Case capital of Oregon entropy service is a subsidiary of the capital of Oregon Telephone Company that is managed by Cynthia Wu. The companionships principal(prenominal) purpose is to perform information processing for its p atomic number 18nt company. In 2000, Salem Telephone Company hot seat, hawkshaw Flores apprehension the existence of the Salem Data run subsidiary would tighten up the pressure for bid rate increases at heart the company. afterwards conducting some research and becoming aware of the occurrence that kick downstairs businesses in the region could use similar foretell work, it became in truth apparent that it would be a good opinion to swap computing device 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 t o fetch 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 followup of business for the company, three years after the reorganization, the company dumb 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 designate as to how and why Salem Data Services was not driving high grosss.

1. Variable cost in singing to revenue hours have an identifiable relationship with the revenue ho urs that are listed. While there is a rela! tionship 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 theatrical role equipment and fixtures * Wages and Salaries: Operations: salaried staff, governance development, administration, sales, sales promotion, somatic services Variable Costs: * Power *...If you pauperization to follow a full essay, order it on our website: OrderCustomPaper.com

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