Salem Telephone Organization

 Essay in Salem Phone Company

1 . Revenue several hours represent the important thing activity that drives costs at Salem Data Services. Which expenses in Exhibit a couple of are varying with respect to revenue hours? Which expenses are fixed with respect to revenue several hours?

A) Changing with respect to earnings hours

Hourly personnel

Salaries expense

Electricity Expense

B) Fixed expenditures with respect to revenue hours:

Hire

Custodial companies

Computer leases

Maintenance

Depreciation of pc equipment, workplace equipment and fixtures

Functions salaried personnel

Systems creation and repair

Administration and sales

Product sales promotion

Company services

installment payments on your В For each expense that is variable with respect to revenue several hours, calculate the charge per revenue hour.

Electric power

Hourly Workers

Salaries

Total Cost

January

1546/329=4. several

7896/329=24

=24+4. 7=28. several

February

1485/316=4. 7

7584/316=24

=4. 7+24=28. 7

Mar

1697/361=4. six

8664/361=24

=24+4. 7=28. 7

3. В Create a contribution margin income statement intended for Salem Data Services; Assume that intra company use is 205 hours, Assume commercial utilization is at the March Level. Revenue

Varying costs

Contribution Margin

Fixed Costs

Operating Income (loss)

From the circumstance we know that intracompany work was billed for $400 each hour, and business sales had been billed at $800 each hour. Commercial

138*$800=$110, 400

138*$28. 70=$3960. 70

($800-28. 7)*138= $106, 439. 40

Intracompany

205*$400=$82, 500

205*$28. 7=5883. 5

(400-28. 7)*205= $76116. 50

Overall

$192, 500

$9844. 12

$182, 5iphon scam. 90

$212, 939

($30, 383. 10)

4. В Assuming the intracompany demand for support will typical 205 hours per month, what level of commercial revenue several hours of computer system use will be necessary to make your money back?

Break even solution follows: Earnings = Changing Costs + Fixed Costs 205*400 + X *800 =(X+205) *28. 7 +212, 939

X= 177. 39 Hrs. had to break even

five. Each choice will impact...

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