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Essay Details:
Essay text:
Assume that intra company usage is 205 hours. Assume commercial usage is at the March level.
Sales - intracompany 205 @ $400 Variable Expenses Detailed
Sales - commercial 138 @ $800 Power 1,612 1,417 1,807
Personnel 8,232 7,238 9,226
Sales Promotion 7,853 6,905 8,800
Contribution Incomes Statement Corp. Service 15,690 13,797 17,584
Salem Data Services Total Variable 33,387 29,357 37,417
Total Per Unit
Sales (343) 192,400 561
Variable Expenses 33,387 97
Contribution Margin 159,013 464
Fixed Expenses 189,620
Net Operating Income (30,607)
4) Assuming the intracompany demand for service will average 205 hours per month, what level of commercial revenue hours of computer use would be necessary to break even each month?
Fixed expenses = 189,620
Per unit CM = 464
Units to break even = 409
5) Estimate the impact on income of each of the options Flores has suggested if Wu estimates as follows:
a) Increasing the price to commercial customers to $1,000 per hour but reduce demand by 30%
Sales - intracompany 205 @ $400 82,000 Per Unit
Sales - commercial 96...
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