ECO204_2008_Test_2_solutions

E advertising assuming advertising raises sales of

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: h 223 138 361 40 143 544 Exhibit 2 Prestige Data Services Summary Results of Operations, First Quarter 2003 January Revenues Intercompany sales Commercial sales Computer use Other Total Revenue Expenses Space costs Rent Custodial services February March $ 82,400 98,400 9,241 190,041 $ 72,400 108,000 9,184 189,584 $ 89,200 110,400 12,685 212,285 $ 8,000 1,240 9,240 $ 8,000 1,240 9,240 $ 8,000 1,240 9,240 Equipment costs Computer leases Maintenance Depreciation: Computer equipment Office equipment and fixtures Power 95,000 5,400 25,500 680 1,633 128,213 95,000 5,400 25,500 680 1,592 128,172 95,000 5,400 25,500 680 1,803 128,383 Wages and salaries Operations Systems development and maintenance Administration Sales 29,496 12,000 9,000 11,200 61,696 9,031 7,909 15,424 $ 231,513 $ (41,472) 29,184 12,000 9,000 11,200 61,384 8,731 7,039 15,359 $ 229,925 $ (40,341) 30,264 12,000 9,000 11,200 62,464 10,317 8,083 15,236 $ 233,723 $ (21,438) Materials Sales promotions Corporate services Total expenses Net income/(loss) Exhibit 3 Prestige Data Services Standard Costs - Average Month, First Quarter 2003 Variable Costs Power per hour Operations wages Total variable expenses per hour Fixed Costs Rent Custodial Computer lease Computer maintenance Depreciation Power Wages and Salaries Operations Systems development Administration Sales $4 $24 $28 $8,000 $1,240 $95,000 $5,400 $26,180 $200 $21,600 $12,000 $9,000 $11,200 Total Wages & Salaries Fixed Costs $53,800 Total non-variable expenses Sales promotion $189,820 $8,000 $197,820 << Total Fixed Costs 18...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern