Essay on Salem Case Study

Submitted By brianjohn12345

Words: 332

Pages: 2

Open Document

As part of our financial analysis of Salem Telephone Company and its subsidiary, Salem Data Services, we’ve encountered several factors that may be contributing to Salem Data Service’s consistent operating loses. The first issue is the remaining available hours to sell each month. This accounts for approximately 38% of the total hours available for revenue each month. The company is losing out on huge profits by not fully utilizing these hours. In March, the company had 223 hours available to sell. The company could have increased revenues by $178,000 (223 hours* $800) if they fully utilized the hours available for sell. Another issue of concern is the large amount of fixed assets that equates to a high operating leverage. Our analysis includes these factors and our suggestions for turning Salem Data Services into a profitable company.
1) Salem Data Services has two kinds of expenses; fixed and variable. As you can see in the chart below, variable expenses with respect to hours are ‘Power’ and ‘Operations: Hourly Personnel’. Fixed expenses with respect to revenue hours include; rent, custodial services, computer leases, maintenance, depreciation of computer and office equipment, systems development and maintenance, administration, and sales.
2) The chart below lists variable expenses with respect to revenue and lists the cost per revenue hour. The variable costs per hour are 28.70. January February March
Power 1,546 1,485 1,697
Operations: Hourly Personnel 7,896 7,584 8,664
Total Variable Costs 9,442 9,069 10,361
Total Revenue Hours 329 316 361
Variable Costs per Hour 28.70 28.70 28.70 *This information was derived from exhibit 1 and 2 in the case.
3) By breaking out the

Essay about Salem Case Study

Case Summary Salem Telephone Company, a regulated utility, received permission from the state Public Service Commission to establish Salem Data Services. Salem Data Services would provide data processing services for the telephone company as well as outside companies. Unlike Salem Telephone, Salem Data Services would not be a regulated utility and would be considered a separate entity. While the intention would be that the profit from Salem Data would ease pressures to raise telephone prices,…

Words 1023 - Pages 5

Salem Possessed By Hoffer: Summary

about the Salem Witch trials, from humorous trails of the Sanderson sisters from the Disney movie Hocus Pocus, to the play The Crucible that used a horrible tail in the history of the United States to highlight the mindset of McCarthyism. Many people in academia have found the Salem Witch trials to be a baffling case and have attempted to divulge and make sense of the events occurring. When looking at the historians interpretation one may find a long list of why the events occur. In Salem Possessed…

Words 1075 - Pages 5

Essay about Hopwood, A.

review on Hopwood (1980,1983)'s study, particularly in the area of the role of accounting based on the historical studies and accounting practices to provide information for decision making has been conducted by Salem. In his findings, a number of case studies including Enron in 2001 and Lehman Brothers in 2010 were illustrated in response to Howpood's suggestion on the powers of accounting interrelations between organisations and society (Hopwood &Miller, 1994). Salem also expressed his opinions on…

Words 974 - Pages 4

Human Memory Essay

Associationism is the oldest of the three theories. This theory suggests that memory relies on forming links and bonds between two related things. This theory comes from works of Hermann Ebbinghaus, who first conducted the laboratory experiments in the study of memory during the early nineteenth century. According to his idea, the ability to remember must have established connections between stimuli and responses. If the bonds between the stimuli and responses become strong, it suggests that a habit has…

Words 2281 - Pages 10

Assignment 3 A Problem Exists Essay

first formal vaccine developed for the prevention of disease was used by Edward Jenner for smallpox. Jenner first became aware of the protective effects of cowpox from the story of a local dairymaid who had been exposed to the disease. After years of study and observation, he became convinced of the story's validity. In 1796, he immunized an eight-year-old boy with material from a cowpox lesion. No ill effects were seen. Further immunizations supported the theory that cowpox protected against smallpox…

Words 1446 - Pages 6

Herbert Hoover Accomplishments

Prohibition had failed after being given an “honest trial (American Decades).” After defeating Al Smith for the presidency, as president, he worked to enforce prohibition, within lawful limits, because it was his duty to do so under the Constitution (Salem Press). Yet the report of his commission, which contained only one Prohibitionist, was evasive if not confused (Biography). “The findings are wet and the recommendations are dry,” the despairing president complained to his secretary of state (Hoover)…

Words 1550 - Pages 7

Bridgeton Paper

TOPICS IN MANAGEMENT ACCOUNTING AMIS 4310 CASE QUESTIONS Seligram, Inc.: Electronic Testing Operations 1. What caused the existing system at ETO to fail? 2. Calculate the reported cost of the five components listed in Exhibit 6 using: a. The existing system. b. The system proposed by the accounting manager. c. The system proposed by the consultant. 3. Which system is preferable? Why? 4. Would you recommend any changes to the system you prefer? Why? 5. Would you…

Words 1646 - Pages 7

Salem Witch Trials Research Paper

Trials of Conspiracies Something that is so controversial and still stirs up paranoia is witch trials. Witch Trials have been around for centuries and follow the practice of magic and use of spells and spirits towards others. The Salem witch trials in specific were significant because the public had let this topic become out of control and so widely spoken of so soon. In Massachusetts 1692, three young girls had a strange feeling coming over them. They started feeling controlled and would convulse…

Words 3799 - Pages 16

Bipolar Disorder: High Aspirations And Expectations Caused By Mania

Another subtype of bipolar disorder is cyclothymia, which is a case of mild mood swings. Those who suffer from cyclothymia experience the polar moods in mild dosages, and in shorter or more distanced periods. The DSM-IV suggests that Seasonal Affective Disorder is a form of cyclothymia (Gooding, 2009, p. 1). Studies indicate that genetics play an important role in having bipolar disorder. According to Salem Health Genetics, studies on have been conducted on the relation of bipolar disorder and…

Words 1531 - Pages 7

Essay about Cotton Mather

disorder all his life, though, that made speaking difficult. Just as his father had done, he attended Harvard College, being admitted at the age of twelve. Only three years later, he graduated, having become somewhat of a genius in the sciences and the study of ancient languages. In spite of his stammer, he returned to his father's church and was ordained, remaining connected to the church until his death in 1728. Throughout his life, he always found fulfillment in doing good deeds, such as building…

Words 1054 - Pages 5