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 important features of creational patterns, Question 1 Explain ...

Question 1 Explain the role of object oriented designers in developing a software system Question 2 What are the four essential elements of design patterns? Explain Question 3

Telecommunications standards, TELECOMMUNICATIONS STANDARDS: They are d...

TELECOMMUNICATIONS STANDARDS: They are defined internationally by the CCITT (Consultative Committee for International Telegraphy and Telephones), but to deal with the rapidly

Object oriented programming, Write a method called Grade that takes a numer...

Write a method called Grade that takes a numeric score and returns a letter grade. Use the rule that 90 to100 is an A, 80 to 89 a B, 60 to 79 is a C, 45 to 59 is a D, and less th

Stable marriage Problem, How to make a stale marriage program by implementi...

How to make a stale marriage program by implementing the Gale Shapley algorithm using Java program

Jsp project, how to save a Vector theList to a .txt file and read that .t...

how to save a Vector theList to a .txt file and read that .txt file to a jsp page /??

Many to many relationships, Each Many to Many relationship type maps into t...

Each Many to Many relationship type maps into the Table. The primary key of this relevant is the combination of the primary keys of the participating entity types. These are also c

Spreadsheet development, Basic steps/tasks involved in spreadsheets develop...

Basic steps/tasks involved in spreadsheets development

Internet, how to get tamil information in internet

how to get tamil information in internet

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