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

Memory of computer, Memory : Computers store information internally as wel...

Memory : Computers store information internally as well as externally. Linked to CPU is an internal memory unit where all the instructions and data are stored. It contains the

Identify important elements of multimedia, Problem 1 Identify important...

Problem 1 Identify important elements of Multimedia and explain with example. Stating important elements of Multimedia with example of each Problem 2 Explain a

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

Enterprise resource planning, ENTERPRISE RESOURCE PLANNING What ...

ENTERPRISE RESOURCE PLANNING What has football got to do with it? asks management guru Michael Hammer in his latest best seller Beyond Reengineering. The answer is almos

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

Basic concepts of Assembler language , Information Units In order for the P...

Information Units In order for the PC to process information, it is essential that this information be in unique cells called registers. The registers are sets of 8 or 16 flip-flop

Php, Which of the following is NOT a type of SQL constraint?

Which of the following is NOT a type of SQL constraint?

EM202073PRA65DBMS, HEY, i wanna discuss about DBMS assignment Did you find...

HEY, i wanna discuss about DBMS assignment Did you find a link of mySQL?

Execute a command in operating system, Execute a command in operating syste...

Execute a command in operating system: In order to execute a command OS does the following steps:   It accepts a command from a user through mouse clicks or from t

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