Description
workings of Salem Telephone, case in Management Accounting course.
SALEM TELEPHONE COMPANY FIRST QUARTER
JAN No of weekends (M-F) *24hrs per day No. of Saturdays *8 hrs per day no. of Saturdays Total hrs available for revenue Revenue hours Intracompany Commercial total revenue hrs Hours available to sell 22 528 5 40 568
206 123 329 239
RESULT OF OPERATIONS JAN REVENUES
Intracompany Sales Commercial Sales Total Revenue
EXPENSES
82400 98400 180800
Space costs-Rent Custodial Services
8000 1240 9240
EQUIPMENT COSTS
Computer leases Maintenance Depreciation Computer equipments Office equipments & fixtures Power
95000 5400 25500 680 1546.3 128126.3
WAGES & SALARIES
Operations:salaried staff
21600
Operations:hourly personnel Sys development & maintenance Administration Sales
7896 12000 9000 11200 61696 7909 15424 222395.3 -41595.3
Sales Promotion Corporate Services
Total Expenses NET INCOME (LOSS)
Q3
Intra company usage Commercial usage Total hours Rate/hr - Intra company Rate/hr - Commercial Cost/hr - Power Cost/hr - Salary Revenue Total variable Cost Contribution Contribution Margin
205 138 343 400 800 4.7 24 192400 9844.1 182555.9 0.95
EM TELEPHONE COMPANY
FEB 20 480 4 32 512
MARCH 23 552 4 32 584
181 135 316 196
223 138 361 223
FEB
MARCH
72400 108000 180400
89200 110400 199600
8000 1240 9240
8000 1240 9240
95000 5400 25500 680 1485.2 128065.2
95000 5400 25500 680 1696.7 128276.7
21600
21600
7584 12000 9000 11200 61384 7039 15359 221087.2 -40687.2
8664 12000 9000 11200 62464 8083 15236 223299.7 -23699.7
Q4 Intracompany hours Commercial hours Total Fixed Cost Variable Cost -Intracompany Revenue - Intracompany Total Revenue Total Variable Cost Total Cost Q5 (i) Rate/ hr - Intraday customers Rate/ hr - Commercial customers Hours - Intraday Hours - Commercial Tota Fixed Cost Total Variable Cost Total Revenue Total Contribution Profit Q5 (ii) Rate/ hr - Intraday customers Rate/ hr - Commercial customers Hours - Intraday Hours - Commercial Tota Fixed Cost Total Variable Cost Total Revenue Total Contribution Profit Q5 (iii) Rate/ hr - Intraday customers Rate/ hr - Commercial customers Hours - Intraday Hours - Commercial
Jan
Feb
March
205 205 205 177.41 176.198 177.3921 212953 212018 212939 5883.5 5883.5 5883.5 82000 82000 82000 223928 222958.4 223913.7 10975.17 10940.38 10974.65 223928.2 222958.4 223913.7 Jan 400 1000 205 86.1 212953 8354.57 Feb 400 1000 205 94.5 212018 8595.65 Mar 400 1000 205 96.6 212939 8655.92
168100 176500 178600 159745.4 167904.4 169944.1 -53207.6 -44113.7 -42994.9 Jan 400 600 205 159.9 Feb 400 600 205 175.5 Mar 400 600 205 179.4
212953 212018 212939 10472.63 10920.35 11032.28 177940 187300 189640 167467.4 176379.7 178607.7 -45485.6 -35638.4 -34331.3 Jan 400 800 205 159.9 Feb 400 800 205 175.5 Mar 400 800 205 179.4
Total Variable Cost Total Revenue Total Contribution Profit Req FC Sales Promotion Q6
10472.63 10920.35 11032.28 209920 222400 225520 199447.4 211479.7 214487.7 199447.4 211479.7 214487.7 199447.4 211479.7 214487.7 -5596.63 6500.65 9631.72
Hence Salem Telephone can become profitable by increasing the Sales Promotion activities and the rates/hr can r Increasing the Sales Promotion activities would increase the revenue hours and thereby the company can earn pr
n activities and the rates/hr can remain same. hereby the company can earn profits
doc_932824290.xls
workings of Salem Telephone, case in Management Accounting course.
SALEM TELEPHONE COMPANY FIRST QUARTER
JAN No of weekends (M-F) *24hrs per day No. of Saturdays *8 hrs per day no. of Saturdays Total hrs available for revenue Revenue hours Intracompany Commercial total revenue hrs Hours available to sell 22 528 5 40 568
206 123 329 239
RESULT OF OPERATIONS JAN REVENUES
Intracompany Sales Commercial Sales Total Revenue
EXPENSES
82400 98400 180800
Space costs-Rent Custodial Services
8000 1240 9240
EQUIPMENT COSTS
Computer leases Maintenance Depreciation Computer equipments Office equipments & fixtures Power
95000 5400 25500 680 1546.3 128126.3
WAGES & SALARIES
Operations:salaried staff
21600
Operations:hourly personnel Sys development & maintenance Administration Sales
7896 12000 9000 11200 61696 7909 15424 222395.3 -41595.3
Sales Promotion Corporate Services
Total Expenses NET INCOME (LOSS)
Q3
Intra company usage Commercial usage Total hours Rate/hr - Intra company Rate/hr - Commercial Cost/hr - Power Cost/hr - Salary Revenue Total variable Cost Contribution Contribution Margin
205 138 343 400 800 4.7 24 192400 9844.1 182555.9 0.95
EM TELEPHONE COMPANY
FEB 20 480 4 32 512
MARCH 23 552 4 32 584
181 135 316 196
223 138 361 223
FEB
MARCH
72400 108000 180400
89200 110400 199600
8000 1240 9240
8000 1240 9240
95000 5400 25500 680 1485.2 128065.2
95000 5400 25500 680 1696.7 128276.7
21600
21600
7584 12000 9000 11200 61384 7039 15359 221087.2 -40687.2
8664 12000 9000 11200 62464 8083 15236 223299.7 -23699.7
Q4 Intracompany hours Commercial hours Total Fixed Cost Variable Cost -Intracompany Revenue - Intracompany Total Revenue Total Variable Cost Total Cost Q5 (i) Rate/ hr - Intraday customers Rate/ hr - Commercial customers Hours - Intraday Hours - Commercial Tota Fixed Cost Total Variable Cost Total Revenue Total Contribution Profit Q5 (ii) Rate/ hr - Intraday customers Rate/ hr - Commercial customers Hours - Intraday Hours - Commercial Tota Fixed Cost Total Variable Cost Total Revenue Total Contribution Profit Q5 (iii) Rate/ hr - Intraday customers Rate/ hr - Commercial customers Hours - Intraday Hours - Commercial
Jan
Feb
March
205 205 205 177.41 176.198 177.3921 212953 212018 212939 5883.5 5883.5 5883.5 82000 82000 82000 223928 222958.4 223913.7 10975.17 10940.38 10974.65 223928.2 222958.4 223913.7 Jan 400 1000 205 86.1 212953 8354.57 Feb 400 1000 205 94.5 212018 8595.65 Mar 400 1000 205 96.6 212939 8655.92
168100 176500 178600 159745.4 167904.4 169944.1 -53207.6 -44113.7 -42994.9 Jan 400 600 205 159.9 Feb 400 600 205 175.5 Mar 400 600 205 179.4
212953 212018 212939 10472.63 10920.35 11032.28 177940 187300 189640 167467.4 176379.7 178607.7 -45485.6 -35638.4 -34331.3 Jan 400 800 205 159.9 Feb 400 800 205 175.5 Mar 400 800 205 179.4
Total Variable Cost Total Revenue Total Contribution Profit Req FC Sales Promotion Q6
10472.63 10920.35 11032.28 209920 222400 225520 199447.4 211479.7 214487.7 199447.4 211479.7 214487.7 199447.4 211479.7 214487.7 -5596.63 6500.65 9631.72
Hence Salem Telephone can become profitable by increasing the Sales Promotion activities and the rates/hr can r Increasing the Sales Promotion activities would increase the revenue hours and thereby the company can earn pr
n activities and the rates/hr can remain same. hereby the company can earn profits
doc_932824290.xls