For the exclusive use of R. Ortega
REV: NOVEMBER 1, 2005
WILLIAM J. BRUNS, JR.
Salem Telephone Company
In April 2004, Peter Flores, president of Salem Telephone Company, was preparing for a meeting with Cynthia Wu, manager of Salem Data Services. An agreement with the state Public Service
Commission had permitted Salem Telephone to establish Salem Data Services, a computer data service subsidiary, to perform data processing for the telephone company and to sell computer service to other companies and organizations. It was necessary for these two companies to be separate because Salem Telephone was a regulated utility, and Salem Data Services was an unregulated company. Flores had told the …show more content…
Intracompany work was billed at $400 per hour, a rate based on usage estimates for 2001 and the Public Service Commission’s restrictions that cost to Salem Telephone should not exceed an average of $82,000 per month. Commercial sales were billed at $800 per hour.
While most expenses summarized in the report were self-explanatory, Flores reminded himself of the characteristics of a few. Space costs were all paid to Salem Telephone. Salem Data Services rented the ground floor of a central exchange building owned by Salem Telephone for $8,000 per month. In addition, Salem Data Services paid a charge for custodial service based on Salem Telephone’s estimated annual cost per square foot, as telephone personnel provided these services.
Computer equipment had been acquired by lease and by purchases; leases had four years to run and were noncancelable. Owned equipment was all salable but probably could not bring more than its book value in the used-equipment market.
Wages and salaries were separated in the report to show the expense of five different kinds of activities. Operations salaries included those of the six people necessary to run the center around the clock; in addition there were operations wages paid hourly workers who were required when the computer was in operation. Salaries of the programming staff that provided service to clients and maintained the operating system were reported as system
Click here to unlock this and over one million essaysGet Access
July 13 – You have baking equipment, including an oven and mixer, which you have been using for your home-based business and will now start using in the bakery. You estimate that the equipment is currently worth $5,000, and you transfer the equipment into the business in exchange for additional common stock. The equipment has a 5-year useful life.
July 13 – You have baking equipment, including an oven and mixer, that you have been using for your home-based business and will now start using in the bakery. You estimate that the equipment is currently worth $5,000, and you transfer the equipment into the business in exchange for additional common stock. The equipment has a 5-year useful life.
State Farm must receive the appropriate clearance from Canadian authorities to complete the construction of the call center. Building codes are mandated by the local and national authorities to verify undue pejorative influence on
e. On August 1, 2011, the company is paid $3,840 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in August. When the cash was received, the full amount was credited to the Extermination Services Revenue account.
Customers must use the internet to fill out an online form to address their complaints or service needs. These forms are processed by employees in your department. Currently the turnaround time on any given form is between four to eight hours. This creates a number of other customer complaints. Project Call Center is designed to reduce this turnaround time by 75% by creating and staffing a call center in Tampa. Building acquisition, building renovations, building fit out, IT system upgrades, and hiring and training of staff are estimated to cost $8.5 million dollars. This $8.5 million dollars can be paid evenly in any two quarters in the next year. In addition, seven new employees will need to be hired at $40,000 burdened labor costs per year to staff the call center. Management of this project could easily be done with the current in-house staff. Most of the work of this project would be outsourced and will have minimal impact on day-to-operations.
On December 12, 2014, Advisor met with Kate F Cunningham and her brother, Elbert T Parker Jr. who is also her POA, and her other brother, John Parker and another person, a female, who did not introduce themselves at client’s residence; 121 S Jenison, Lansing Michigan
Please refer to the Appendix below that I have created for details on how monthly rental rates and usage charges are developed by Computer Services and then charged to Consulting Groups.
After reviewing the case study and realizing that I had to gently let down my largest customer, I decided to use the telephone for my preferred electronic communication style. The telephone
Prestige Telephone Company Average intercompany billing capped at $82,000/month Ri = Pi Qi “Inter company” Pi = $400/hr. → Qi = 205 hours/month “Commercial” PC = $800/hr
Telecom must provide services to all residential areas, provide free and emergency communication services and keep their prices low so that they stay competitive.