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

Application software, Application Software:   Application software is ...

Application Software:   Application software is designed and developed to accomplish one or more specific task or solve a particular problem.    Application software may be

Explain any two issues in web design, Question 1 Explain any two issues in...

Question 1 Explain any two issues in web design Question 2 Mention the factors considered for good design Question 3 What are the advantages of graphical system?

Write a program to solve a maze 10x10, write a program to solve a 10x10 maz...

write a program to solve a 10x10 maze. prompt the user for an input text file containing ten rows(ten characters on each row). Use following characters in the input file: * startin

Computer, identify application software from the list? ms excel linux inter...

identify application software from the list? ms excel linux internet explorer adobe photshop sound card driver window disk manger adobe dream weaver windows file explorer

Software basics, SOFTWARE BASICS: Software is a generic term covering ...

SOFTWARE BASICS: Software is a generic term covering the concepts, procedures and instructions which cause the computer systems to accomplish the required job, Generally, soft

Random access memory (ram), RANDOM ACCESS MEMORY (RAM): The RAM-type me...

RANDOM ACCESS MEMORY (RAM): The RAM-type memory will allow data to be written into it, as well as read from it. With very few exceptions, RAMS lose their contents when the powe

Programming Project 1, Programming Project You will implement 2 algorithms...

Programming Project You will implement 2 algorithms to solve the single source shortest paths problem, Bellman-Ford Algorithm and Dijkstra''s algorithm Allowed programming languag

Explain the operations of alu, Question 1 Explain the operations of ALU ...

Question 1 Explain the operations of ALU Question 2 Write down the Booth's Multiplication Algorithm with an example Question 3 Explain the characteristics of memor

Algorithm writing, algorithm to simulate railway reservation process

algorithm to simulate railway reservation process

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