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

Computer graphics, A scaling constant indicates an expansion of length

A scaling constant indicates an expansion of length

Graphical user interface and arrays, In this program, you are going to writ...

In this program, you are going to write a program for playing the game of Hangman. In this game, the computer will pick a word and display a sequence of blanks to be filled in; one

Numerical data , i don''t understand how to create a program using double, ...

i don''t understand how to create a program using double, int, float, short etc

Data Mining Assignment (by Weka), Hi there, I''m just asking that do you d...

Hi there, I''m just asking that do you do data mining assignment?

Explanation of components of excel work book, Problem 1 Briefly explain...

Problem 1 Briefly explain Components of Excel Work book Explanation of Components of Excel Work book Problem 2 How do you insert a watermark in the Word docume

Global positioning system, How does GPS work in the field of Sport or athle...

How does GPS work in the field of Sport or athletics?

Memory unit of computer, Memory unit of computer: The Memory  unit is ...

Memory unit of computer: The Memory  unit is an important component of a computer where all the data and information are stored in the form  of binary digits (combination of 0

Indexing and abstracting databases, Indexing and Abstracting Databases: ...

Indexing and Abstracting Databases: A study of growth of indexing and abstracting services over the years would show that during the past two centuries, these services have be

Two-tiered architecture, Two-tiered architecture: This approach basic...

Two-tiered architecture: This approach basically introduced a database server to replace the file server. The emergence of relational database management systems and graphica

Printers, Printers: Printers: Printers exist in a variety of forms:  ...

Printers: Printers: Printers exist in a variety of forms:  Line Printers: These have been widely used for many years in large computer installations. They are design

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