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

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

Depth first search-artificial intelligence, Depth First Search-Artificial i...

Depth First Search-Artificial intelligence: Depth first search is  similar to breadth first, except that things are added to the top of the plan rather than the bottom. In our

Artificial intelligence-general considerations for search, General Consider...

General Considerations for Search If we can specify the first state, the operators and the goal check for a look for difficulty, then we know where to create, how to move and w

Application software, Application Software:   Application software is ...

Application Software:   Application software is designed and developed to accomplish one or more specific task or solve a particular problem.    Application software may be

Management information system, Is IT a strategic weapon or a survival tool?...

Is IT a strategic weapon or a survival tool? Discuss.

Homework, #questioPurpose of this assignment: 1. Using dictionaries. Assign...

#questioPurpose of this assignment: 1. Using dictionaries. Assignment: Write a program to read a text file and create a dictionary. The keys for the dictionary should be all

Consistency or data in dbms, Consistency or data in DBMS Consistency - da...

Consistency or data in DBMS Consistency - data in DBMS(Database) is accurate in modeling real world, follows integrity constraints User may ensure transaction consistent by itsel

Virtual memory, What is virtual memory? How address mapping is done in cach...

What is virtual memory? How address mapping is done in cache memory? Elaborate your answer with examples.

High level languages, High level languages: High level languages (conv...

High level languages: High level languages (converted to machine code by compiler or equivalent) are much easier to program, as well as to understand. Several high level langu

Wat do u do, can u write my assignment for me

can u write my assignment for me

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