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 actual process of ftp applications, Question 1 How do you inse...

Question 1 How do you insert Image source code in HTML Question 2 Explain actual process of FTP applications Question 3 Write a short note on TIFF BMP

Discuss about the descriptor classes, Question 1 List down any six feature...

Question 1 List down any six features of a Smartphone Question 2 Give a brief note on a) Internal Flash Disk. b) Use of C++ in Symbian OS Question 3 What are the naming

What is the delay of the filter, QUESTION We wish to use the Kaiser win...

QUESTION We wish to use the Kaiser window method to design a discrete-time filter with generalized linear phase that meets specifications of the following form:

M s word., explain the steps to form a colourful card

explain the steps to form a colourful card

Threading Module of python, The latest threading module comprised with Pyth...

The latest threading module comprised with Python 2.4 provides much more powerful, high-level hold for threads than the old thread module. The threading module depictions all the m

What is vpn? explain the vpn protocols, Question 1 What is IT auditing? Di...

Question 1 What is IT auditing? Discuss the three phases involved in the IT auditing Question 2 List and explain the two types of load balancing methods Question 3

Describe any five requirements of clustering in data mining, Question 1...

Question 1 What is data mining? What are the major issues in data mining? Explain 2 What is meant by data reduction? Explain any three techniques of data reduction 3 Define a b

Encoders, compare encoders and multiplers

compare encoders and multiplers

Utility , what are the definition?

what are the definition?

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