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

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.

Artificial intelligence-general considerations for search, General Consider...

General Considerations for Search If we can specify the first state, the operators and the goal check for a look for difficulty, then we know where to create, how to move and w

Basic computer structure, Basic computer structure: A computer is an el...

Basic computer structure: A computer is an electronic device, which can accept and process data by carrying out a set of stored instructions in sequence. This sequence of math

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

Source and object programs, Source and Object Programs A set of instruc...

Source and Object Programs A set of instructions in a high-level language are called “Source program”. Since high-level languages are machine independent, it is required to fir

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?

Programs - programming language, Programs - programming language: Prog...

Programs - programming language: Programs to implement algorithms on the computer must be written in a language that the computer can understand. It is fruitful, therefore, to

Homework , Using only the digits 1-6 how many five digit numbers can be for...

Using only the digits 1-6 how many five digit numbers can be formed? How many of these have at least a 5? How many of them have either no 5 or no 6?

Basic, WAP TO ACCEPT MARKS OF THREE SUBJECT FOR STUDENT & CALCULATE TOTAL M...

WAP TO ACCEPT MARKS OF THREE SUBJECT FOR STUDENT & CALCULATE TOTAL MARKS AND PERCENTAGE

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