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

OPERATING SYSTEM, WHAT IS MULTIPLE CONTIGUOUS VARIABLE PARTITIONING

WHAT IS MULTIPLE CONTIGUOUS VARIABLE PARTITIONING

Fundamental of algorithm, exchanging the two variables: problem,algorithm d...

exchanging the two variables: problem,algorithm development,discription

Write a note on file permissions on linux, Question 1 Write a note on a...

Question 1 Write a note on advantages and disadvantages of Linux 2 Write a note on "File Permissions" on linux 3 Explain the usage of following Linux commands Cd kill

Foundation of computer system, Foundation of Computer System Q.No-1: W...

Foundation of Computer System Q.No-1: What do you understand by the Efficiency in term of Computers? and How will you measure it? Also define Speed and its factors which ca

Explain what is rmi, QUESTION (a) Explain what is RMI? (b) Draw a di...

QUESTION (a) Explain what is RMI? (b) Draw a diagram showing the different parts of the Java RMI architecture. (c) What is the function of the RMI security manager and RM

Java, what is meant by deliverable in strus base applications

what is meant by deliverable in strus base applications

The skill of Assembly Language, The skill of Assembly Language Programming ...

The skill of Assembly Language Programming (AoA), Randy Hyde''s acclaimed text on assembly language programming, is the most-frequently recommended book on 80x86 assembly language

Computer security, concepts and components of computer security

concepts and components of computer security

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