Celil DİNÇEL 26.09.2014
E-MBA – Student No: 9501133724
1. Prestige data service is a new company there will be a transient period and it will need time to gain market share. When we looked the financial result of the firms, the company looks relatively losing money.
a. If you check the excel sheet Q1-Cost Based Calculation which is showing Prestige data company currently pays expenses, after closing the Data company, prestige phone company will have to pay these expenses because some of the services still going on and there is some fixed cost which have to be paid such as leasing installments.
b. If you check the excel sheet Q1-Revenue&Cost Based Cal which ...view middle of the document...
My choice definitely to go ahead, this company will be successful as performance and profit point of view
2. When we check the revenue,
e. We assumed that intercompany sales hours 205 hours, so the revenue from inter company will be fixed 82.000, There are fixed cost and variable cost which are shown in the Q2 excel sheet. The salaries of the operation staff are fixed but they are paid additionally for hours of services which are given to customer. So the total salary is changing. Corporate services are changing according to the wages and salaries, so this cost is also variable. These are calculated in the Q2 excel sheet. As a result of calculation we have to sell approx. 182 Hours for commercial sales
3. Estimated effects of
f. As you can see the calculation in Q3-A excel sheet, the revenue effect is more deeper then cost effects, So this changes will not work the company is still in loss
g. Decreasing the price is also negative effect on the result...