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

2. What benefits can a company gain by managing its , 2. What benefits can ...

2. What benefits can a company gain by managing its own information infrastructure and services?

The microprocessor, THE MICROPROCESSOR The three fundamental units, whi...

THE MICROPROCESSOR The three fundamental units, which comprise a CPU, have now been discussed in general terms.  So too has a microprocessor, because a microprocessor can be de

Discuss the attributes of speech codec, Question 1 What is mobile telephon...

Question 1 What is mobile telephone initialization? Explain the three main goals of this procedure Define GSM system operations Introduction to mobile telephone initializ

Determine recursive c function computes, QUESTION (a) Give the two cond...

QUESTION (a) Give the two conditions required by a binary tree of depth d to be an almost complete binary tree. (b) Determine what the following recursive C function compute

C LANGUAGE, WHAT DO MEAN BY ALGORITHM,HOW CAN ALGORITHM HELP TO WRITE BETTE...

WHAT DO MEAN BY ALGORITHM,HOW CAN ALGORITHM HELP TO WRITE BETTER COMPUTER PROGRAM ,WRITE AN ALGORITHM IN COMPUTER INTEREST

Explain the protection features of ms access, Question 1 Explain the pr...

Question 1 Explain the protection features of MS Access? 2 What is Query Parameter? 3 What are the steps to be taken for improving performance of Microsoft Access database? 4 W

Flowcharts, what is a dry running of flow chart?

what is a dry running of flow chart?

Multiple Statement Groups as Suites, Sets of individual statements making u...

Sets of individual statements making up a single code block are known as suites in Python. Composite or complex statements for example if, def while and class are those which neces

Define Multilevel Queue Scheduling?, • A multilevel queue scheduling algori...

• A multilevel queue scheduling algorithm divides the ready queue in several separate queues, for example • In a multilevel queue scheduling processes are lastingly assigned to one

Define CISC and RISC ?, Two competing architectures were developed for impr...

Two competing architectures were developed for improving the architecture of the central processing unit, and different processors are conventional to each one. Both had their powe

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