Prestige Telephone

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1. Appraise the results of operations of Prestige Data Services                                        
                                            
    Data is not a problem to Telephone.  He needs to go beyond the operations summary and look at the costs and benefits to Telephone.                                        
                                            
    "Many of Data’s  costs are not relevant to the analysis.  Several items are unavoidable costs (equipment leases, depreciation), that Telephone would need to pay even if it closed Data.  Others are corporate overhead allocated to Data by Telephone, including some that provide income to Telephone."                                        
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