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

Processor, The role of array processor

The role of array processor

Write down dijkstra''s algorithm, QUESTION (a) Write down the Update ...

QUESTION (a) Write down the Update Step in the Dijkstra's algorithm explaining its complexity. (b) Propose a Generic Algorithm for Depth-First Search Algorithm, assuming

Data transmission, Data transmission: Most digital communication data i...

Data transmission: Most digital communication data is transmitted in a serial form, that is, only one bit at a time. Transmission of data in serial form means each bit is tran

Explain distributed file systems, Question 1 Write short note on          ...

Question 1 Write short note on                             1) NFS 2) CIFS Question 2 What is Virtual Application? Write down the benefits and drawbacks of it Questi

Sql server management studio assignment, Department (DeptNo, DeptName, Offi...

Department (DeptNo, DeptName, Office, Phone) Employee (EmpNo, FirstName, LastName, JobTitle, HireDate, Salary, MgrNo, Deptno) Customer (CustNo, CompanyName, Street, City, State, Zi

MIDI, Explain about MIDI audio

Explain about MIDI audio

What is computer, how to use computer and how we can manage it

how to use computer and how we can manage it

MIS, information system providors

information system providors

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