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

Data communications, Data communication as a need developed in the 1960s wi...

Data communication as a need developed in the 1960s with the interconnection of peripheral devices to mainframe computers. Within the immediate vicinity of the mainframe computer t

Describe the protocol used by the mmu, Question 1: a) A distinction is...

Question 1: a) A distinction is often made between computer architecture and computer organisation. Describe, using examples, the meaning of computer architecture. b) Name

Library function, Library function :   These are the functions supplied...

Library function :   These are the functions supplied with the programming language. The code or definition of library functions does not have to be written in a user program w

Java, what is meant by deliverable in strus base applications

what is meant by deliverable in strus base applications

ICT, what are the significance of telecommunications deregulation

what are the significance of telecommunications deregulation

Pep8, Write an Assembly program that reads an integer (-32,768 through 32,7...

Write an Assembly program that reads an integer (-32,768 through 32,767) in decimal and prints its equivalent in binary. The output must show all 16 bits. And you must use a loop

Optical disk storage and cd - rom, Optical disk storage and cd - ROM: ...

Optical disk storage and cd - ROM: Optical disk storage is relatively new alternative to magnetic storage. Digital data is burnt into the surface of a plastic disk coated with

System hardware, what problems does one encounter when you have more pipeli...

what problems does one encounter when you have more pipelines?

Physics, . State laws of transverse vibrations in stretched strings. Explai...

. State laws of transverse vibrations in stretched strings. Explain how do you verify them using sonometer.

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