Salem

Salem Data Services (SDS) is really a riddle to Salem Telephone Company (STC). It could appear to be so based on the loss that is
occurring, exclusively disciplineing that SDS was capable to increase performance in the last few months (with a decreasing of loss for 41.7% from February to March) STC
should wait another year to see in which direction SDS is moving. We also have to consider that a big asset in the fixed be is the depreciation, which isnâ
€™t a real cost but only use to be tax-supported.
At all events Flores should make some primary(prenominal) changes in SDS to make it more profitable. First of all it’s necessary to decrease the fixed costs which
are $212,939, frequently too high. Flores should rethink if it’s not possible to keep down some of them or to change some fixed costs into variable cost to prevent
big losses. Another important pure tone toward profit is to increase promotion. As we saw, increased promotion passel increase hours sold by 30 % and ensure to be
in the black.



Flores should also try to start up off of the remain hours apiece month. He should give some special offers to sell the remaining hours and use in this
sort the whole capacity of SDS. It’s clear that in this way it isn’t possible to get the same revenue per whole sold as normally, but it’s only important
to cover the variable cost per building block and a little offset of the fixed cost with all unit sold. In this way with every additional unit sold he is able to cover a part of
the total fixed cost and get in this way a better result at the end of the month.If you regard to get a full essay, order it on our website: Orderessay



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