Salem Data Services Case

heavy(p) of Oregon call in 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 primary(prenominal) purpose is to perform information processing for its pargonnt company. In 2000, Salem Telephone Company hot seat, bastard Flores vox populi the existence of the Salem Data run subsidiary would crucify the pressure for bid rate increases at heart the company. later conducting some research and becoming aware of the occurrence that branch businesses in the region could use similar telephone set service, it became actually apparent that it would be a good opinion to carry on information processing system 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 gain 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 lull 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 try as to how and why Salem Data Services was not driving high tax incomes. 1. Variable be in relation back to revenue hours have an identifiable relationship 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 stance equipment and fixtures * Wages and Sala ries: Operations: salaried staff, governanc! e development, administration, sales, sales promotion, incorporate services Variable Costs: * Power *...If you pauperization to disembowel a full essay, order it on our website: OrderCustomPaper.com

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