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

Wide area networks and metropolitan area networks, Metropolitan Area Networ...

Metropolitan Area Networks : These type of networks generally cover specific metropolitan area and provide to them all the services.  Wide Area Networks (WANs): Wide Are

Information security, can someone balance between information security and ...

can someone balance between information security and access, if yes,how can they balance?

Briefly explain registers, Question 1 Briefly explain Registers Que...

Question 1 Briefly explain Registers Question 2 What are complier and interpreter? Question 3 Explain the process of installing Windows XP Question 4 Wr

What is thread in operating system?, Regardless of of the fact that a thre...

Regardless of of the fact that a thread must execute in process, the process and its associated threads are different notion. Processes are used to group resources together and thr

Application-specific multiprocessors, Application-Specific Multiprocessors ...

Application-Specific Multiprocessors Although this book details a variety of similar architectures, it specializes in the design of such architectures in the perspective of par

Describe symbols chart in assembly process ?, SYMBOLS CHART Every one of t...

SYMBOLS CHART Every one of the parts on code line in assembler is known as token, for instance on the code line: MOV AX, Var We comprise three tokens, the MOV instruction, the AX o

What is an abstract data type, QUESTION (a) What is an abstract data ty...

QUESTION (a) What is an abstract data type? (b) Give two limitations of the array implementation of lists. (c) Give the major disadvantage of the dynamic implementation o

Assembly Language Project, Our instructor gave us a project in making a mec...

Our instructor gave us a project in making a mechanical game or simple device using assembly language, can anyone give me a an example of a project description for our proposal?

Classification of computers, Classification of Computers DIGITAL, ANAL...

Classification of Computers DIGITAL, ANALOG AND HYBRID Computers are of three basic types – Digital, Analog, and Hybrid. Current use of the word “computer” almost a

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