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

Micro-computer, explain the function of each block in the block diagram of ...

explain the function of each block in the block diagram of micro-computer

Cache memory, Cache memory: To reduce the idle time of the CPU and inc...

Cache memory: To reduce the idle time of the CPU and increase the speed of processing, a fast memory can be used. This can be done by using a large size of main memory. But th

Decision table , No charges are reimbursed to the patient until the deducti...

No charges are reimbursed to the patient until the deductible has been met. Hospital visits are reimbursed at 80% and Lab visits are reimbursed at 70%. Doctor''s office visits are

Java - Stack and Queue, Consider a class called Configuration. This class “...

Consider a class called Configuration. This class “encapsulates” the configuration management for any software system. For example, once created, the user can simply ask the config

Cmis, how much it cost for 8 week class

how much it cost for 8 week class

Extension.., short note about extension..

short note about extension..

Cpu, what is cpu

what is cpu

ALP Program to find 10''s complement, I would like to know how to write a p...

I would like to know how to write a program for a 8086 microprocessor in ALP to find 10''s complement of a packed BCD number.

Obtain the truth table and a boolean expression, Problem 1. Convert the...

Problem 1. Convert the following number system 12.34 (8) to binary number system 23BC.0A (16) to decimal number system 456.012 (16) to Octal number system 123

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