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

How do you insert a symbol in a word document, Fundamentals of IT 1. Ho...

Fundamentals of IT 1. How do you insert a symbol in a Word document? 2. Explain absolute cell addressing? 3. Discuss Custom List? 4. Explain applications of Multimedia

Flowchart, create a flowchart showing average score for the 3 quizzes assum...

create a flowchart showing average score for the 3 quizzes assume that there are 3 sections each having 5 students the only valid number to be entered is 1-100 for the quizzes shou

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

E-learning, E-learning: E-learning is one of the most used terms on th...

E-learning: E-learning is one of the most used terms on the Internet that describes any form of learning that is facilitated academically by the electronic means. Such means m

Explain the term "algorithmic delay", QUESTION a) What is Time Division...

QUESTION a) What is Time Division Multiplexing (TDM), illustrate your answer with a diagram b) Describe four types of RTCP messages c) i) What is silence compression in I

Twisted pairs, Twisted Pairs: Twisted pairs are familiar to all of us ...

Twisted Pairs: Twisted pairs are familiar to all of us as the copper wire telephone lines. These are of low frequency, and support a limited bandwidth (one voice channel) but

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