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

Software engineering, assignment 1:architectural design 2: component des...

assignment 1:architectural design 2: component design

Excel, Your next step is to analyze "proposed" technical requirements/specs...

Your next step is to analyze "proposed" technical requirements/specs based on the business requirements (new performance needs) for Big Bucks. 1.Create a "CRUD" Matrix in an Exce

Process control management, Process Control Management:   A  process  ...

Process Control Management:   A  process  is an executing program. It is considered the standard unit of work within a computer system. Every executing program is treated as a

Visual Basic, difference between genral and event procedures

difference between genral and event procedures

Socket programming, Important: • No cheating will be tolerated. • No late s...

Important: • No cheating will be tolerated. • No late submissions. Total Points for this programming assignment: 100 The goal of your programming assignment is to build and experim

Block matching algorithm, I am using block matching algorithm to get the mo...

I am using block matching algorithm to get the motion vectors, now, how can I get the depth map/depth value from the motion vectors?

Project help required!, im student of BSCS 1st semester and I have to make ...

im student of BSCS 1st semester and I have to make project for IT fair and I dont know computer that very much so please I required your help, help me if you can. thanks

Flowchart, 1. The volume of a pyramid is taken from the formula: V = 1/3 x ...

1. The volume of a pyramid is taken from the formula: V = 1/3 x AREA OF BASE x ALTITUDE Given the dimensions of a pyramid, calculate the cost of materials for making that pyrami

Briefly explain art driven character design, Question 1 What is role playi...

Question 1 What is role playing game? Explain the special design issues for sports games Question 2 What do you mean by collusion? Explain its types Question 3 Wri

Assignment, Hi I have an assignment can you help me ?

Hi I have an assignment can you help me ?

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