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

Introduction to computer, Computer: People call a lot of things, compu...

Computer: People call a lot of things, computers. Some of them are cheap, but can only process numerical information. Such devices would better be described as 'calculators' r

#title., what is input and output device? explain meaning of input and outp...

what is input and output device? explain meaning of input and output devices

Wcdma – fdd technology, WCDMA – FDD technology Multiple access technology i...

WCDMA – FDD technology Multiple access technology is wideband CDMA (WCDMA) All cells at same carrier frequency Spreading codes used to separate cells and users Signal bandwidth 3.8

Heuristic search strategies-artificial intelligence, Heuristic Search Strat...

Heuristic Search Strategies-Artificial intelligence In general speaking, a heuristic search is one which utilizes a rule of thumb to improve an agent's performance in solving p

Algorithms and flowcharts, write algorithm and draw flowchart to check whet...

write algorithm and draw flowchart to check whether the given number is palindrome or not

Design problem, Design Problem 1. Implement a basic file system managed fr...

Design Problem 1. Implement a basic file system managed from within a file. The file system should have the following capabilities: i. List files stored along with their sizes.

Data structures, let me know if you can do this assignment and how long it ...

let me know if you can do this assignment and how long it takes

Multiple queues, I need to create mulitple queues assignment that run concu...

I need to create mulitple queues assignment that run concurrently. It is like a queue simulation with  number of checkouts with a random probability of clients, joining any one

Time and space tradeoffs in search, Time and Space Tradeoffs in search-arti...

Time and Space Tradeoffs in search-artificial intelligence: In practice, you need to stop your agent at some stage if it has not searched a solution by then. However, if we can

Client - server architecture, Client/ Server Architecture:   As the ca...

Client/ Server Architecture:   As the capacity and power of personal computers improved, the need to share the processing demands between the host server and the client workst

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