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

Define Multilevel Queue Scheduling?, • A multilevel queue scheduling algori...

• A multilevel queue scheduling algorithm divides the ready queue in several separate queues, for example • In a multilevel queue scheduling processes are lastingly assigned to one

The microprocessor, THE MICROPROCESSOR The three fundamental units, whi...

THE MICROPROCESSOR The three fundamental units, which comprise a CPU, have now been discussed in general terms.  So too has a microprocessor, because a microprocessor can be de

Generic techniques in artificial intelligence, G e ne ric Techniques Dev...

G e ne ric Techniques Developed: In  the  pursuit  of  solutions  to  many   problems  in  the  above  categories,  serval specific  techniques have sprung up which have bee

Cryptography, #questionConsider the one-time pad encryption scheme to encry...

#questionConsider the one-time pad encryption scheme to encrypt a 1-bit message m, and assume m is chosen with uniform distribution from message space M={0,1}. Let E1 be the event

Stack, How to write an algorithm to reverse the order of elements on a stac...

How to write an algorithm to reverse the order of elements on a stack s using two additional stacks

Time sharing system , Time Sharing System: With the use multiprogrammi...

Time Sharing System: With the use multiprogramming, the batch processing can be quite  efficient. However, for many jobs, it is desirable to provide a mode in which the user i

Pipelining concept, The easiest way to approach pipelining is to regard as...

The easiest way to approach pipelining is to regard as the three stage fetch, decode and execute instruction execution cycle outlined earlier. There are times during each of these

Artificial intelligence-environments, Artificial Intelligence-Environments ...

Artificial Intelligence-Environments   We have seen that intelligent agents should take into description sure information when   choosing  a rational act,  including inform

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