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

Artificial intelligence, Artificial Intelligence Artificial Intelligen...

Artificial Intelligence Artificial Intelligence is difficult science to explain, as it has fuzzy borders with  computer science, mathematics,  philosophy, physics,  psychology

Geometric mean - algorithm, The geometric mean is obtained by multiplying a...

The geometric mean is obtained by multiplying all the four numbers and taking the fourth root of the product. Let x 1 ,x 2 ,x 3  and x 4  be the given four numbers then geometric

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

Describe the binary search algorithm, QUESTION 1 Describe the binary se...

QUESTION 1 Describe the binary search algorithm using an example of your own. QUESTION 2 (a) By showing all your workings, give a big-O estimate for f(x) = (x + 1)lo

An e-mail account, An E-Mail Account: Inbox: Inbox is the main folder ...

An E-Mail Account: Inbox: Inbox is the main folder in your email account. It contains all the e-mails that have arrived in your e-mail account. You can click on inbox to see t

Database assignment help , What îs exactly data type and Database Assignme...

What îs exactly data type and Database Assignment Help  ? We have can take several points of view, A data type îs set of values — char typically has 256 distinct values, into has

Computer architecture, Subject Name CIT2193 COMPUTER ARCHITECTURE Topic AS...

Subject Name CIT2193 COMPUTER ARCHITECTURE Topic ASSIGNMENT Due Date 16 March 2012 Name : ……….…………………….……………….. Lecturer : ................................. Intake : ………………….

Cai, what is cai

what is cai

Immediate addressing, These addressing modes are: With immediate addressing...

These addressing modes are: With immediate addressing, no lookup of data is essentially required. The data is located in the operands of the instruction itself, not in a different

Explain data transfer and arithmetic operations, Question 1 Convert the fo...

Question 1 Convert the following binary numbers to decimal 101110 1110101 110110 101010 110010 Question 2 Explain CPU module and types of transfers betwe

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