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

Omputer applications 2, true or false-- most designs of a desktop publishin...

true or false-- most designs of a desktop publishing document needs to follow clear, specific rules pertaining to design

Basic description of a computer system, The main components of a computer ...

The main components of a computer system at a basic level Computer System We call computer system to the whole configuration of a computer, as well as the peripheral units and the

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

Explain distributed file systems, Question 1 Write short note on          ...

Question 1 Write short note on                             1) NFS 2) CIFS Question 2 What is Virtual Application? Write down the benefits and drawbacks of it Questi

Describe counting instructions, They are used to reduce or enlarge the cont...

They are used to reduce or enlarge the content of the counters. DEC INC DEC INSTRUCTION Idea: To diminish the operator. Syntax: DEC destiny This action subtracts 1 from the destiny

Cisc, two characteristics og CISC architecture?

two characteristics og CISC architecture?

What is a socket, QUESTION (a) You have been asked to design and implem...

QUESTION (a) You have been asked to design and implement a chat application. Which protocol would you used TCP or UDP? Justify your answer. (b) Explain why multithreading is

CAI, what is CAI? explain its pit falls.

what is CAI? explain its pit falls.

Compare between file processing system and dbms, Problem a. Compare bet...

Problem a. Compare between file processing system and DBMS >>This is a comparison of DBMS with file processing system which the answer has to be searched from the GOOGLE an

Analogue and digital signals, Analogue and digital signals: Analogue (c...

Analogue and digital signals: Analogue (continuous) information is made available in virtually all aircraft equipment.  Figure 1 shows the analogue signal created by a variable

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