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

Graphs, Find the corresponding matrix of the digraph above

Find the corresponding matrix of the digraph above

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

Education and society, mention the aims of education in present scenario

mention the aims of education in present scenario

Create a queue, QUESTION (a) Give the representation of a queue as an a...

QUESTION (a) Give the representation of a queue as an abstract data type. (b) What is a priority queue? Give two types of priority queues. (c) The following program does

What is Assembler Programming?, To build assembler programs with TASM prog...

To build assembler programs with TASM programs is a different program structure than from using debug program. It''s important to comprise the subsequent assembler commands: ..CODE

C program , write a c program for below question

write a c program for below question

Definition of ALU , The ALU, or the arithmetic and logic unit is the part...

The ALU, or the arithmetic and logic unit is the part of the processor that is occupied with executing operations of an arithmetic or logical nature. It works in conjunction by mea

Search strategy-artificial intelligence, Search strategy-artificial intelli...

Search strategy-artificial intelligence: Soundness: You  can hear  in  some  application domains  -  i.e.  automated  theorem proving - that a search is "sound and complet

Project on ASP .NET MVC 5, I am looking for a project which is based on ASP...

I am looking for a project which is based on ASP.NET MVC 5.Could you please help me ?

Programs - programming language, Programs - programming language: Prog...

Programs - programming language: Programs to implement algorithms on the computer must be written in a language that the computer can understand. It is fruitful, therefore, to

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