Individual Case Study – Prestige Telephone
Prestige Telephone Company has established a computer services subsidiary, Prestige Data Services which specialize in offer data processing for telephone companies including its parent company and sell computer service to other organization. However, Prestige Data Services has not achieved positive account balance to date.
Therefore, the main issues are:
a) To continue or stop Prestige Data Services operation or separate as stand-alone entity from parent company since it is not generating profit.
b) Considering changes in pricing or promotion that might improve profitability.
c) Reduces company resources wastage if any.
d) Reduce service hour from 24 hour to 2 shift per day
|Semi Variable Cost |February |March |
|Wages & Salaries (operations) |$29184 |$30264 |
|xTotal Revenue Hrs (Volume) |316 |361 |
| &nb ...