Discuss what should flores do about salem data services

Assignment Help Accounting Basics
Reference no: EM131786954

1. Estimate the effect on income of each of the options Flores has suggested if Wu estimates as follows:

Increasing the price to commercial customers to $1,000 per hour would reduce demand by 30%.

Reducing the price to commercial customers to $600 per hour would increase demand by 30%.

Increased promotion would increase revenue hours by up to 30%. Wu is unsure how much promotion this would take. (How much could be spent and still leave Salem Data Services with no reported loss each month if commercial hours were increased 30%?)

2. Based on your analysis above, is Salem Data Services really a problem to Salem Telephone Company? What should Flores do about Salem Data Services?

Reference no: EM131786954

Questions Cloud

Estimate the liability of an institution : Why is it not always simple to estimate the liability of an institution?
Compare and describe the shape of the distributions : The histograms show the distribution of the estimated numbers of hours per month spent on social services for project boys (left) and project girls (right).
Best described as surplus management : Why asset/liability management is best described as surplus management?
Calculate the security default risk premium : A particular security's equilibrium rate of return is 9 percent. For all securities, the inflation risk premium is 3.25 percent and the real risk-free rate.
Discuss what should flores do about salem data services : Based on your analysis above, is Salem Data Services really a problem to Salem Telephone Company. What should Flores do about Salem Data Services
What is the economic surplus of an institution : a. What is the economic surplus of an institution? b. What is the accounting surplus of an institution?
Identify two relevant and current literature articles : Identify two relevant and current literature articles on your topic. Create a literature map of the research on the topic you discussed before.
What should be the carrying value of montanas inventory : Montana Co. has determined its year-end inventory on a FIFO basis to be $606,000. What should be the carrying value of Montana's inventory
What is the market value of the portfolio of bonds : a. What is the market value of the portfolio of bonds? b. What does duration of 6 mean for the portfolio of assets?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd