Financial News Service Filed Under: Telecommunications Services PHILIPPINE Long Distance Telephone Co.s (PLDT) board of directors has approved in principle the broad outline of the group's strategic plans for the next three years to sustain its growth, which involves increased participation in the booming call center industry. The board also approved a new Long-Term Incentive Plan (LTIP) for company officials and employees for the period 2007 to 2009. Awarding of the incentives will be contingent
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Salem Telephone Company – Case Study Summary In 2001 Salem Telephone established a subsidiary, Salem Data Services, for the purpose of performing data processing services for the telephone company and to meet this need for other companies. By 2003 Salem Data Service had finally overcome the problems experienced during startup and was running smoothly but their reporting had yet to show a profitable month. Peter Flores, president of Salem Telephone Company was discouraged by the presented results
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SUMMARY Salem Telephone Company operates as a regulated public utility. The state Public Service Commission (PSC) permitted Salem to establish a wholly owned subsidiary to provide computer services to other companies for a profit. The reason for the separate entities was so Salem Data Services could sell services unregulated and Salem Telephone could operate without raising rates. In 2000, the initial report to the PSC from the president of Salem Telephone was to convince them that
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Salem Telephone Company Case Study Salem Telephone Company Case Study Introduction Salem Data Service, SDS, is a vital asset to Salem Telephone Company. Even though there are losses occurring, SDS has begun to increase performance and losses have been decreasing over the last several months. Background Salem Telephone Company needed computer services to plan, control, and account for operations so it created Salem Data Service, SDC. Because Salem Telephone Company was a regulated utility
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Variable Cost per Hour Usage 8 Appendix E- Contribution Margin Income Statement, March 2004 9 Appendix F- Contribution Margin Ratios 11 Appendix G- Break-even Analysis 12 Appendix H- “What if” Analysis 13 Executive Summary Since 2001, Salem Data Services has been operating at a net loss. After review the reports from first quarter 2004, it has become apparent that action will be necessary. Through our examination of the first quarter 2004 reports, we have concluded three key areas
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Salem Telephone Company | Accounting 5302 | | Summary: Salem Data Services is a subsidiary of Salem Telephone Company. In this report we analyze and discuss the impact of Salem Data Services on its parent company and determine the best course of action for Salem’s Management to undergo. Expenses: We analyzed the expenses of Salem Data Services to better understand their cost structure and determined their variable and fixed expenses. We used the fact that revenue hours are the cost
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Charles Steiner Salem Telephone Company Case Analysis 7 October 2015 1. Using exhibit two, the variable expenses with respect to revenue hours are power and hourly personnel salaries. The fixed expenses are: rent, custodial services, computer leases, maintenance, depreciation of equipment and fixtures, operations salaried staff, systems development/maintenance
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1. Why did Salem Telephone Company form Salem Data Services? The company was formed to perform data processing for Salem Telephone Company and also sell these services to other customers, because Telephone service is a regulated utility the profits from unregulated data processing services could be used to off-set costs of providing telephone service at regulated prices. This logic was approved by the Public Service Commission as long as the two companies were separate. 2. How long does it
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Salem Telephone Company Case Study 1. Variable Expenses with respect to revenue hours: Power expense, hourly personnel salaries expense. Fixed expenses with respect to revenue hours: Rent, custodial services, computer leases, maintenance, depreciation of computer equipment and office equipment and fixtures, operations salaried staff, systems development and maintenance, administration, and sales, sales promotions, corporate services. 2. Units: dollars per hour January February March Power expense
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Salem Telephone Co Case Study #2 Overview: Salem Telephone Company (STC) is a telephone company who is regulated by the state Public Service Commission. The state Public Service Commission encouraged public utilities under its jurisdiction to seek new sources of revenue and profits. This would reduce the need for rate increase that higher costs would otherwise bring. The company formed an agreement with the state Public Service Commission to create a subsidiary. Thus Salem Data Services (SDS)
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