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

Use triggers to maintain referential integrity, At times, Brewbean''s has c...

At times, Brewbean''s has changed the id number for existing products. In the past, they have had to add a new product row with the new id to the BB_PRODUCT table, modify all the c

What are the Proposals for Achieving Mutual Exclusion?, Proposal a) Disabli...

Proposal a) Disabling Interrupts (Hardware Solution) • Every process disables all interrupts just after entering in its critical section and re-enables all interrupts just previous

Define server clustering, Question 1 Discuss the impacts of disaster faced...

Question 1 Discuss the impacts of disaster faced by the organization Question 2 Explains the steps involved in disaster recovery planning Question 3 What do you mean by

About the faculty posts, is there any oppurtunity for a mca to teach mcasub...

is there any oppurtunity for a mca to teach mcasubjects online

Formulate linear programming problem, Question (a) A firm produces four...

Question (a) A firm produces four products: P , Q , R , and S . Each unit of product P requires two hours of milling, one hour of assembly, and $10 worth of in-process in

Data transmission, DATA TRANSMISSION: When we talk on the telephone we...

DATA TRANSMISSION: When we talk on the telephone we generally transmit a message to someone else. The message is made up of words that we speak into the telephone instrument.

Comments in Python, A hash sign (#) that is not within a string literal beg...

A hash sign (#) that is not within a string literal begins a comment. All characters later than the # and up to the physical line end are division of the comment, and the Python in

Qbasic, write a program of circle of any colour

write a program of circle of any colour

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