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

Netlogo, Do you have expert can deal with netlogo

Do you have expert can deal with netlogo

Computer security, concepts and components of computer security

concepts and components of computer security

Syntax of a Macro, The divisions which make a macro are: • Declaration of t...

The divisions which make a macro are: • Declaration of the macro Code of the macro Macro termination directive The assertion of the macro is done the following way: Name Macro [par

Flowchart looping, create a flowchart showing average score for the 3 quizz...

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

Knowledge of the environment of ai system, Knowledge of the Environment ...

Knowledge of the Environment We must distinguish between knowledge an agent receives through it's sensors and knowledge about the world from which the input comes. Knowledge a

Microprocessor, what is computer? explaine the block diagram of a general p...

what is computer? explaine the block diagram of a general purpose digital computer.

Draw a neat diagram of the organization of computer, Question 1 Draw a nea...

Question 1 Draw a neat diagram of the organization of computer and explain about each unit Question 2 Explain batch processing system and multi-processing in brief Questi

Digital camera , Digital Camera: A Digital camera is an electronic dev...

Digital Camera: A Digital camera is an electronic device which takes video or still photographs or both, digitally by recording images via an electronic image sensor. Digital

Importance of good database design , Importance of Good Database Design Poo...

Importance of Good Database Design Poor database design may have results in unwanted data redundancy Poor database design keeps errors leading to bad decisions and results Practica

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