Salem Telephone Essay Preview: Salem Telephone Report this essay Salem Telephone Company (“STC”) Question 1 Variable Costs Equipment costs: Power Wages and Salaries: Operations hourly personnel Fixed Costs Space costs: Rent, custodial services Equipment costs: Computer leases, maintenance, depreciation of computer equipment and office equipment / fixtures Wages and Salaries: Operations salaried staff, systems development.
Salem Telephone Company Salem Telephone Company Looking at Exhibit 2 in the case the expenses that appear to be variable costs with respect to revenue hours include, Power, Operations: Hourly Personnel, Sales Promotion. The fixed costs with respect to revenue hours include rent, custodial services, computer leases, depreciation, maintenance, salaried staff, system development and maintenance,.
Salem Telephone Company Essay Preview: Salem Telephone Company Report this essay “Revenue hours” represent the key activity that drives costs at Salem Data Services. Which expenses in Exhibit 2 are variable with respect to revenue hours? Which expenses are fixed with respect to revenue hours? Variable Fixed Rent Power Custodial Ops Hourly Wages Computer Leases.
Salem Telephone Company Case Study Essay Preview: Salem Telephone Company Case Study Report this essay Salem Telephone Company Case Study Group 9 The costs that vary as a result of revenue hours are power and hourly personnel costs. As additional revenue hours are realized, the cost to power the computers and to pay the personnel.
