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

What are the features that bash shell provides, Question 1 What are the fe...

Question 1 What are the features that Bash shell provides? Question 2 Explain Runlevels Question 3 Discuss the following                           1) Links 2) Doma

Micro-computer, explain the function of each block in the block diagram of ...

explain the function of each block in the block diagram of micro-computer

Operating systems, Consider the state transition diagram of Figure 3.9b. Su...

Consider the state transition diagram of Figure 3.9b. Suppose that it is time for the OS to dispatch a process and that there are processes in both the Ready state and the Ready/Su

Computer, identify application software from the list? ms excel linux inter...

identify application software from the list? ms excel linux internet explorer adobe photshop sound card driver window disk manger adobe dream weaver windows file explorer

Digital video disks, Digital Video Disks: DVD stands for Digital Video...

Digital Video Disks: DVD stands for Digital Video Disks or Digital Versatile Disks. A DVD stores much more data than a CD-ROM. Its capacities are 4.7GB, 8.5GB, and 20GB etc. T

What isit, what can you do and what and how who can becbgbfbvuidfgvbkjfdhvb...

what can you do and what and how who can becbgbfbvuidfgvbkjfdhvb98dshrnfjkbhqdbnfiubnfdjbhdfiubndfubhfdbhfdiubhdfuibhyfdubhdfbhfbhdf8u

Web browser, Web Browser:   A Web browser is software application that ...

Web Browser:   A Web browser is software application that enables you to find, retrieve, and display information available on the World Wide Web (WWW). Browser also allows you

Briefly explain the shutter speed, Question 1 Write a note on transition, ...

Question 1 Write a note on transition, transition types & Features Question 2 Describe the different types of lens used in film shooting Question 3 Briefly explain

Define opportunity cost, Define opportunity cost The opportunity cost...

Define opportunity cost The opportunity cost of any commodity is defined as the cost of next best alternative, which has been sacrificed for producing the given commodity. Th

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