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

Cryptography, For which X,Y in {o, O, Theta, Omega, omega}, do the relation...

For which X,Y in {o, O, Theta, Omega, omega}, do the relationships t(n)+t''(n) = X(min(t(n),t''(n))) and t(n)+t''(n) = Y(max(t(n),t''(n))) hold for all t,t'' such that t(n),t''(n)

Ida* search-artificial intelligence, IDA* Search-Artificial intelligence: ...

IDA* Search-Artificial intelligence: A* search is a sophisticated and successful search strategy. yet, a problem with A* search is that it might  keep every states in its memor

Editor and assembler, Editor and Assembler:   To write a program in...

Editor and Assembler:   To write a program in any of the programming languages requires an editor.  This is  a program that is used to create text files. While saving the p

The elif Statement, The elif statement permits you to check multiple expres...

The elif statement permits you to check multiple expressions for truth value and execute a block of code the moment one of the conditions estimates to true. similar to the else, th

Definition of procedure, A procedure is a compilation of instructions to wh...

A procedure is a compilation of instructions to which we can express the flow of our program, and once the execution of these instructions is over power is given back to the next l

Entropy calculation, -(9/14)log2(9/14)-(5/9)log2(5/9) calculate with soluti...

-(9/14)log2(9/14)-(5/9)log2(5/9) calculate with solution.

Distinguish between the following javascript built-in method, QUESTION ...

QUESTION (a) Draw an annotated diagram explaining how data is transmitted to web servers during a standard form submit event. (b) What in your opinion makes a bad web site?

Multi-valued attribute dbms, Multi-valued Attribute DBMS Each multi valued ...

Multi-valued Attribute DBMS Each multi valued attribute maps into a separate table. Include also an attribute for the primary key of the entity and relationship type which the attr

Software Engineering, You are an engineer involved in the development of a ...

You are an engineer involved in the development of a financial system. During installation, you discover that this system will make a significant number of people redundant. The pe

Simple batch systems, Simple Batch Systems: Early machines were very...

Simple Batch Systems: Early machines were very expensive, and therefore it was important to maximize machine utilization. To improve utilization, the concept of batch operat

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