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

Transaction-based model, Transaction-based model: Here,  the pricing i...

Transaction-based model: Here,  the pricing is based on providing a committed business service, for ex, processing payroll for a global company as part of HR offering and this

Excel, how to use excel..

how to use excel..

Basic syntax of python language, The Python language has a lot of similarit...

The Python language has a lot of similarities to Perl, C and Java. Though, there are some specific differences between the languages. First Python Program: relative Mode Programmin

Expalin Processes Vs Threads?, In many respect threads operate in the simil...

In many respect threads operate in the similar way as that of processes. A number of the similarity and differences are: Similarities • Similar to processes threads share CPU and o

Types of browsers, Types of Browsers: Line Mode Browsers : The initia...

Types of Browsers: Line Mode Browsers : The initial browsers were line mode text browsers. These browsers were simple and used to display text line by line. They used to prov

Decision table , No charges are reimbursed to the patient until the deducti...

No charges are reimbursed to the patient until the deductible has been met. Hospital visits are reimbursed at 80% and Lab visits are reimbursed at 70%. Doctor''s office visits are

Internetworking, You have been approached by Company XYZ to design and depl...

You have been approached by Company XYZ to design and deploy a new network that will span three cities in Queensland: Brisbane (12 users), Gold Coast (8 users), and Cairns (6 users

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

Specify the steps to creating a powerpoint presentation, FUNDAMENTALS OF CO...

FUNDAMENTALS OF COMPUTERS 1. Describe the importance of video in multimedia. What are some of the tips to keep in mind while making video for the web? 2. Specify the steps t

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