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

Assignment - concept of programming language , Assignment :  It is compose...

Assignment :  It is composed of variable name, an assignment operator of the language and a value or variable or some expression as per composition allowed based on rules defined

Assembly language, Assembly language : Assembly language is a low level...

Assembly language : Assembly language is a low level programming language similar to machine language, but far easier to write and understand because machine language binary in

Algorithm - programming language, Algorithm : Once a problem has been defi...

Algorithm : Once a problem has been defined precisely, a procedure or process must be designed to produce the required output from the given input. Since a computer is a machine t

Explain popular way commonly used to evaluate interfaces, Question: Usi...

Question: Using a questionnaire is a popular way commonly used to evaluate interfaces. (a) Describe advantages of using questionnaires as a means to evaluate interfaces.

COMPUTER SYSTEM ARCHITECTURE, PLEASE HELP ME TO CONSTRUCT THE XOR GATE USIN...

PLEASE HELP ME TO CONSTRUCT THE XOR GATE USING ONLY NAND GATE

Computer, what is the first computer in this world

what is the first computer in this world

Probability, Mike sells on the average 15 newspapers per week (Monday – Fri...

Mike sells on the average 15 newspapers per week (Monday – Friday). Find the probability that 2.1 In a given week he will sell all the newspapers

Systems Analysis and Design, Ask question #MiniProfessional and Scientific ...

Ask question #MiniProfessional and Scientific Staff Management (PSSM) is a unique type of temporary staffing agency. Many organizations today hire highly skilled, technical employe

Calculate simple interest -algorithm, Algorithm : 1. Read the values of pri...

Algorithm : 1. Read the values of principal amount, time and rate of simple interest into the locations labelled as P, T, R. 2. Set the count T to 1 implying the end of a year. 3.

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