prestige telephone company

Project Description:

1. appraise the results of operations of prestige data services. is the subsidiary really a problem to prestige telephone company? consider carefully the differences between reported costs and costs relevant for decisions that daniel rowe is considering.
2. assuming the company demand for service will average 205 hours per month, what level of commercial sales of computer use would be necessary to break even each month?
3. estimate the effect on income of each of the options rowe has suggested if bradley estimates as follows:
a. increasing the price to commercial customers to $1000 per hour would reduce demand by 30%
b. reducing the price to commercial customers to $600 per hour would increase demand by 30%
c. increased promotion would increase sales by up to 30%. bradley is unsure how much promotion this would take. how much could be spent and still leave prestige data services with no reported loss each month if commercial hours were increased by 30%)
d. reducing operations to 16 hours on weekdays and 8 hours on saturdays would result in a loss of 20% of commercial revenue hours.
4. can you suggest changes in the accounting and reporting system now used for operations of prestige data services which would result in more useful information for rowe and bradley?
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Price Type: Negotiable

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