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MAKING THE CONNECTION UES eI MIs (al Obst aicy Part 1 Chapters 1-4 CableTech Bell Corporation (CTB operates in the telecommunications industry. CTB has two divisions the Phore Divsion and the Cable Service Division. The Prone Division manufactures telephones in several plan's located in the Nicest, The product lines run from relanvely inexoensive touch-ione wal and cesk phones lislar ho) Oh. Th produ 15 adklitional channels ana two mone channels: tional channels and three movie channel 1g activity for the month of 4 table TV senice in expensive, high-quality 2 the basie package plu package, which is the besie package plus 2 he Cable Service Dwision reported the fellaw 13:9 bosic package with 28 chennels: an enhonced Basie Enhanced Pramium Sales {units} 50,000 500,000 300,000 Price per unit 516 $30 $40 Unit costs: tly traced 53 Ss 7 or traced 12 s4 $6 #10 313 515 ‘The unit costs are divided as follows: 70 pervent production and 30 percent marketing and cuscomer service. Direct labor cos: is the only diver used for tracing, Ty ivision 3 0 it costs. The preceding, unit produc the mae 1 uses only production information wae eravided at the request of ting manager and was the resultof a spacial stusly Biyce Young 5, is reasonably satished with the perfermance of the Cable Service Division. March's performance is fairy typical of what has ng over the past wo years. The Phone Division, however, ig another matter. Its 0 arformance has been deciin- ing. Two years ago, income before income taxes had been about 25 percent of sales. Merch’s dismal performance was also typical for what has bees happening this year end is expected to contnue— Unless some action by management is taken to reverse the trend. Lueng March, she Phone Dyson reported the following resuits:

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