The case was heard AT & T wireless business with a focus on their text message service. The industry is characterized by a high proportion of fixed costs in connection with the acquisition of spectrum and network engineering. Variable costs are relatively low and, in the case of text messages, are very low. Pricing and margins in text messages attracted regulators in the United States, Canada and other countries. The case requires the use of key terms in the cost behavior, cost volume profit analysis and product costing, to understand the nature of business and profit related. Many services and high-tech companies have similar behavior of costs and therefore the case allows the students understanding of the management of such enterprises. "Hide
by Vaughan Radcliffe, Mitchell Stein, Michael Lickver Source: Richard Ivey School of Business Foundation 16 pages. Publication Date: March 25, 2011. Prod. #: W11049-PDF-ENG
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