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Assuming the company demand for service will average 205 hours per month, what level of commercial sales of computer use would be necessary to break even each month?

Exhibit 1 Prestige Data Services Summary of Computer Utilization, First Quarter 2003 Revenue Hours January February March Intercompany 206 181 223 Commercial 123 135 138 Total revenue hours 329 316 361 Service hours 32 32 40 Available hours 223 164 143 Total hours 584 512 544 Exhibit 2 Prestige Data Services Summary Results of Operations, First Quarter 2003 January February March $82,400 $72,400 $89,200 Revenues Intercompany sales Commercial sales Computer use Other Total revenue Expenses Space costs: Rent Custodial services 98,400 9,241 $190.041 108,000 9.184 $189,584 110,400 12,685 $212,285 $8,000 1,240 9.240 $8,000 1,240 9,240 $8,000 1,240 9,240 95,000 5,400 95,000 5,400 95,000 5,400 Equipment costs Computer leases Maintenance Depreciation: Computer equipment Office equipment and fixtures Power 25,500 680 1,633 128,213 25,500 680 1,592 128,172 25,500 680 1,803 128,383 Wages and salaries Operations Systems development and maintenance Administration Sales Materials Sales promotions Corporate services Total expenses Net income (loss) 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)

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