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

Explain the tcp/ip reference model with diagram, Question 1 Define the fol...

Question 1 Define the following terms                                   1) Analog Signals and Digital Signals 2) Composite signals Question 2 Define the following terms

Give birth to new life forms, Give birth to new life forms A research ...

Give birth to new life forms A research of Artificial Life will definitely throw light on what it means for a complex application to be 'alive'. Moreover, ALife researchers th

Write a note on dect, Question 1 Explain Tropospheric Refraction Qu...

Question 1 Explain Tropospheric Refraction Question 2 Write a note on DECT Question 3 Explain mobile integrated radio systems (MIRS) Question 4 What are ap

Compact diskette (cd), Compact Diskette (CD) CD-ROM ...

Compact Diskette (CD) CD-ROM CD-ROM stands for Compact Disk-Read Only Memory. This disk comes with data already stored in it. It can store around 640 MB of

Define interlibrary lending, QUESTION (i) Define each of the following ...

QUESTION (i) Define each of the following terms: a) Interlibrary lending b) Manuscript c) Papyrus d) Community profile e) Mauritiana (ii) Explain with example

Factors and criteria for computer, what are the factors and criteria for co...

what are the factors and criteria for computer (from business point of view)?

Project management, #Assignment 1: Project Management and Information Secur...

#Assignment 1: Project Management and Information Security Write a two to three (2-3) page paper that addresses the following: Explicate in detail the importance of project managem

Excel, Your next step is to analyze "proposed" technical requirements/specs...

Your next step is to analyze "proposed" technical requirements/specs based on the business requirements (new performance needs) for Big Bucks. 1.Create a "CRUD" Matrix in an Exce

The form is merely submitted if a user selects either red, Question (a)...

Question (a) What do we signifies by saying that HTTP is a stateless protocol? (b) Explain three ways of working around that statelessness issue (c) Explain with the help

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