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

Explain the architecture of wap, Question 1 Discuss the benefits and goals...

Question 1 Discuss the benefits and goals of e-commerce Question 2 List and explain the features of portal Question 3 Elaborate the TCP/IP model Question 4 Explain the archi

Description of Instruction execution, When software is installed onto a mod...

When software is installed onto a modern day personal computer (most commonly from a CD-ROM, though other media or downloading from the internet is also common), code comprising th

Pep8, Write an Assembly program that reads an integer (-32,768 through 32,7...

Write an Assembly program that reads an integer (-32,768 through 32,767) in decimal and prints its equivalent in binary. The output must show all 16 bits. And you must use a loop

Multi-valued attribute dbms, Multi-valued Attribute DBMS Each multi valued ...

Multi-valued Attribute DBMS Each multi valued attribute maps into a separate table. Include also an attribute for the primary key of the entity and relationship type which the attr

Vdu visual display unit output, VDU (Visual Display Unit) output...

VDU (Visual Display Unit) output Make sure that VDUs are of an appropriate type. They can cause severe eyestrain and tension if you do not check: (a) Colour (

Programming Project 1, Programming Project You will implement 2 algorithms...

Programming Project You will implement 2 algorithms to solve the single source shortest paths problem, Bellman-Ford Algorithm and Dijkstra''s algorithm Allowed programming languag

Lines and Indentation in python , One of the first caveats programmers come...

One of the first caveats programmers come across when learning Python is the reality that there are no braces to point to blocks of code for class and function definitions or flow

Buses, BUSES It can be seen from Figure 4 that there are three buses ...

BUSES It can be seen from Figure 4 that there are three buses - the data bus, the address bus, and the control bus. Each bus consists of a group of parallel wires. The da

Memory management, Memory Management: The purpose of the memory mana...

Memory Management: The purpose of the memory management system is to load programs into memory in such a way as to give each program loaded  the memory that it requires for

Explain the concept of a transition graph, Question 1 Define the concept o...

Question 1 Define the concept of equivalence relation. Give atleast two examples of equivalence relation Question 2 Prove that a graph G is connected if and only if it has 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