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

Define Program formation process, For the formation of a program it is nece...

For the formation of a program it is necessary to follow five steps: Design of the algorithm, stage the problem to be solved is reputable and the best solution is proposed, creatin

C programming program, I wrote a program that adds up 5x5 matrices by colum...

I wrote a program that adds up 5x5 matrices by column and row. Now i have to use pointers to rewrite the same code how would do that

Define stocktaking, QUESTION (i) Define each of the following terms: ...

QUESTION (i) Define each of the following terms: a) Book trade catalogue b) Stocktaking c) Ephemera d) Contracting out e) Special library (ii) Discuss the adv

What is a search engine? explain its various parts, Question 1 What are th...

Question 1 What are the dos and don'ts of Internet Reporting? Question 2 Write a long note on the later years of journalism in USA Question 3 What is a search engi

Explain CPU scheduling and its objectives?, Definition of CPU scheduling: T...

Definition of CPU scheduling: The assignment of physical processors to processes allows processors to complete work. The process of determining that for which process which pro

Database management software, Database Management Software: For storage of...

Database Management Software: For storage of large amounts of varied data, and rapid retrieval and interpretations of data, the database is the ideal tool. It is most useful for s

Deadlocks, What is methods For handling Deadlocks?

What is methods For handling Deadlocks?

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

The skill of Assembly Language, The skill of Assembly Language Programming ...

The skill of Assembly Language Programming (AoA), Randy Hyde''s acclaimed text on assembly language programming, is the most-frequently recommended book on 80x86 assembly language

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