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

What is the importance of using digital certificates, QUESTION a) Crypt...

QUESTION a) Cryptography is a set of techniques and mathematical algorithms. Describe four important areas where cryptography must be applied b) What is the importance of us

Neural Network, The following data set describes whether a given coordinate...

The following data set describes whether a given coordinate is on land owned by XX government. (x,y) | Class ------------------------ (1.5,6) | owned (2,5) | owned (3,4) | owned (

C, A palindrome is a string that reads the same from both the ends. Given a...

A palindrome is a string that reads the same from both the ends. Given a string S convert it to a palindrome by doing character replacement. Your task is to convert S to palindrome

Types of computer, types of computer on the basis of shape, size & resource...

types of computer on the basis of shape, size & resources

Define z-transform of sequence x[n], QUESTION (a) Define z-transform o...

QUESTION (a) Define z-transform of sequence x[n]. (b) A causal LTI system has impulse response h[n], for which the z-transform is                     H(z) = (1+z -1

Input and output devices, Input and Output Devices : The most common input...

Input and Output Devices : The most common input devices that you will see in your PC are the keyboard and the mouse. The keyboard of the computer looks like the keyboard o

Define levels of abstraction in a dbms, Define Levels of Abstraction in a D...

Define Levels of Abstraction in a DBMS, explain briefly, Conceptual Schema, Physical Schema, External Schema

Define and explain flow chart with an example, Question 1 Define and expla...

Question 1 Define and explain flow chart with an example Question 2 Write an algorithm to print all even numbers in descending order and draw the flowchart Question 3 Explain

What do you mean by the term "robotics", Question 1 What do you mean by se...

Question 1 What do you mean by semantic networks? Explain inheritance in semantic networks Question 2 Explain Partitioned semantic networks with an example Question

Data output, Data Output : Processed data is no use to you if you cannot u...

Data Output : Processed data is no use to you if you cannot use it. Once data has been processed, you will either: (1) Send it as a data file to another system, e.g. write a fi

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