How will url services be affected, Basic Computer Science

Assignment Help:

URL services has two divisions. Basic webpages and custom webpages. Ricky Vega, Custom's manager wants to find out why Custom is not profitable. He has prepared the following reports.

URL Services
Segmented Income Statement
For the year ended December 31

[Basic Webpages] [Custom Webpages] [Total Company]
(BasicWeb 1000 units) (Cust.Web 200 units)
Basic Revenue [BW$200,000] : [CW$150,000] : [TC$350,000]
Less Variable Costs
Direct professional labor: design BW$32,000:CW$80,000:TC$112,000
Direct professional labor: install BW30,000:CW4,000 :TC34,000
Direct professional labor: maintain 15,000: 36,000 :51,000
Total Variable Costs $77,000: $120,000: $197,000
Contribution margin $123,000: $30,000: $153,000
Less direct fixed cost
Depreciation on computer equipment $6,000: $12,000: $18,000
Depreciation on servers 10,000: 20,000: 30,000
Total direct fixed costs $16,000: $32,000: $48,000
Segment margin $107,000: $(2,000): $105,000
Less common fixed costs:
Building rent TC$24,000
Supplies TC1,000
Insurance TC3,000
Telephone TC1,500
Website rentalTC 500
Total common fixed costs TC$30,000
Operating income TC$75,000

URL Services
Custom Webpages Division
Incremental Analysis
Design Install Maintain Total
Service revenue $60,000 $25,000 $65,000 $150,000
LEss cariable costs 80,000 4,000 36,000 120,000
Contribution Margin $(20,000) $21,000 $29,000 $30,000
Less direct fixed costs 6,000 13,000 13,000 32,000
Segment margin $(26,000) $8,000 $16,000 $(2,000)

1. How will URL Services be affected if the Custom Webpages Division is eliminated?
2. How will URL Services be affected if the Design segment of Custom Webpages is eliminated?
3.What should Ricky Vega do? What additional info rmation would be helpful to him in making the decision?

 


Related Discussions:- How will url services be affected

Encoders, compare encoders and multiplers

compare encoders and multiplers

Power point microsoft, what are slides how do you put slides on powerpoint

what are slides how do you put slides on powerpoint

Types of computer on basis of size and capabilities, Another way of classif...

Another way of classifying a computer system is based upon its size and capabilities: Microcomputers: Microcomputers are systems based on the use of microprocessors. A Micr

Describe CPU registers , The CPU has four internal registers, each of 16 bi...

The CPU has four internal registers, each of 16 bits. The first four, AX, BX, CX, and DX are common use registers and can also be used as 8 bit registers, if used in such a way it

Network engenering, What role would you assign to each of the four workstat...

What role would you assign to each of the four workstation and any other equipment

Machine Learning, Hi I have a 8 question machine learning problem sheet due...

Hi I have a 8 question machine learning problem sheet due to the 25th of december. The exercises require knowledge of basic classifiers, logistic regression, naive bayes, mixture o

Formulate linear programming problem, Question (a) A firm produces four...

Question (a) A firm produces four products: P , Q , R , and S . Each unit of product P requires two hours of milling, one hour of assembly, and $10 worth of in-process in

Variable - concept of programming language, Variable - Concept of programmi...

Variable - Concept of programming language: Variable: As referencing memory by its physical address is very tedious, variable names are used. A variable is a symbolic name giv

Multiple Statement Groups as Suites, Sets of individual statements making u...

Sets of individual statements making up a single code block are known as suites in Python. Composite or complex statements for example if, def while and class are those which neces

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd