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

E - R diagram, draw the e r diagram for irctc rail ticket reservation onlin...

draw the e r diagram for irctc rail ticket reservation online

Concept in programming language, CONCEPT IN PROGRAMMING LANGUAGE: A Pr...

CONCEPT IN PROGRAMMING LANGUAGE: A Programming Language is used to design and describe a set of instructions and computations to be executed by a computer. To do programming,

Electronic mail , Electronic mail is another PC to PC and PC to mainframe ...

Electronic mail is another PC to PC and PC to mainframe data exchange. If you subscribe to an electronic mail service, it will enable your PC to gain access to a 'mailbox' on a ma

How is the ack request formed, QUESTION a) The handling of the INVITE t...

QUESTION a) The handling of the INVITE transaction in SIP is completely different from the handling of other transactions. The handling of the INVITE is one of the most complex

Algorithm - programming language, Algorithm : Once a problem has been defi...

Algorithm : Once a problem has been defined precisely, a procedure or process must be designed to produce the required output from the given input. Since a computer is a machine t

Batch processing, Batch Processing When the entire computer system is d...

Batch Processing When the entire computer system is dedicated to a single job, the system is said to be operating in Batch Processing mode. In this mode each program is run to

Object oriented programming, Write a method called Grade that takes a numer...

Write a method called Grade that takes a numeric score and returns a letter grade. Use the rule that 90 to100 is an A, 80 to 89 a B, 60 to 79 is a C, 45 to 59 is a D, and less th

Operating system, Operating System: Operating  System is the software ...

Operating System: Operating  System is the software that manages all the computers' resources to optimize its performance provides common services for efficient execution of v

statistics, write a 2 page essay operational gaming and monte carlo simula...

write a 2 page essay operational gaming and monte carlo simulation

Computer science, Explain Canonical cover and Extraneous Attributes with ex...

Explain Canonical cover and Extraneous Attributes with examples.

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