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

Define z-transform of sequence x[n], QUESTION (a) Define z-transform o...

QUESTION (a) Define z-transform of sequence x[n]. (b) A causal LTI system has impulse response h[n], for which the z-transform is                     H(z) = (1+z -1

Hrm , online project on hrm i.e index page

online project on hrm i.e index page

Simple batch systems, Simple Batch Systems: Early machines were very...

Simple Batch Systems: Early machines were very expensive, and therefore it was important to maximize machine utilization. To improve utilization, the concept of batch operat

Define Shortest-Job-First (SJF) Scheduling ?, • It is also known as Shortes...

• It is also known as Shortest-Process-Next (SPN). • Shortest-Job-First (SJF) is a non-preemptive order in which waiting job (or process) with the smallest predictable run-time-to-

Sql server management studio assignment, Department (DeptNo, DeptName, Offi...

Department (DeptNo, DeptName, Office, Phone) Employee (EmpNo, FirstName, LastName, JobTitle, HireDate, Salary, MgrNo, Deptno) Customer (CustNo, CompanyName, Street, City, State, Zi

Memory, Memory The memory unit is used for the storage of binary coded ...

Memory The memory unit is used for the storage of binary coded information. Information consists of instructions and data where: • Instructions are the coded pieces of infor

C program , write a c program for below question

write a c program for below question

Algorithms and flowcharts, 1. Write an algorithm and draw a flowchart to ac...

1. Write an algorithm and draw a flowchart to accept the names and gross salary of 5000 employees and to generate the net pay. If the gross salary is greater than N 50,000 declare

Output devices, Output devices: One of the most important output devic...

Output devices: One of the most important output devices in computer system is its screen commonly called monitor. It is an output device and displays all the programs and app

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