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

Q: HOW DO YOU CODE -- WITHOUT USING ARRAYS OR SPLIT FUNCTION, Q: HOW DO YOU...

Q: HOW DO YOU CODE -- WITHOUT USING ARRAYS OR SPLIT FUNCTIONS -- TO SEPARATE COMMA SEPARATE NUMBER VALUES AND THEN SUM TO TOTAL? I.E., USING SUBSTRING AND INDEXOF. I''ve been try

Pseudocode, How Much Insurance? Many financial experts advise that property...

How Much Insurance? Many financial experts advise that property owners should insure their homes or buildings for at least 80 percent of the amount it would cost to replace the st

Find shortest path in network, Find shortest path from node 1 to node 10 in...

Find shortest path from node 1 to node 10 in the network shown in figure, also find shortest path from node 3 to node 10. Please write all steps to finding shortest path mechanism

Database assignment help , What îs exactly data type and Database Assignme...

What îs exactly data type and Database Assignment Help  ? We have can take several points of view, A data type îs set of values — char typically has 256 distinct values, into has

Flowchart, create a flowchart showing average score for the 3 quizzes assum...

create a flowchart showing average score for the 3 quizzes assume that there are 3 sections each having 5 students the only valid number to be entered is 1-100 for the quizzes shou

Word processing (wp), Word Processing (WP): Word Processing is one of ...

Word Processing (WP): Word Processing is one of the most widespread application software types in use today. Developed as a successor to primitive text editors that were popul

Advantages and disadvantages of e-learning, Advantages and Disadvantages of...

Advantages and Disadvantages of E-Learning: Before we discuss about advantages and disadvantages of e-learning, you should know that e-learning is just another model for learn

Create a database in access, The following are required: Create a ...

The following are required: Create a project in Access.  Your database must have flow and a theme. The database must be normalized.  The content m

Compare cisc with risc cpus, Question 1 Define the following terms        ...

Question 1 Define the following terms                           1) Pipelining 2) Super Pipelining 3) Dynamic Execution 4) Multiprocessing 5) Multimedia Extensions Question 2

Systems Analysis and Design, Ask question #MiniProfessional and Scientific ...

Ask question #MiniProfessional and Scientific Staff Management (PSSM) is a unique type of temporary staffing agency. Many organizations today hire highly skilled, technical employe

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