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

CIS247 week6 Lab., Modify the class declaration of the Employee class to sp...

Modify the class declaration of the Employee class to specify that the Employee class is an abstract class Declare an abstract method called CalculateNetPay that returns a double v

Data processing, Data Processing : Processing data is the most complex fun...

Data Processing : Processing data is the most complex function of a computer system. It is where the computer itself (as opposed to a peripheral, e.g. a visual display unit or a p

Input devices of a digital computer, Input devices of a digital computer: ...

Input devices of a digital computer: Input devices are used to read the instructions and data to be processed and output devices display the results obtained after executing t

Define internet and explain its working, Question 1 Define Internet and ex...

Question 1 Define Internet and explain its working Question 2 Explain page format specifiers and page content specifiers of XSL-FO Question 3 Write a note on HTML

How to find percentage in c++, I have written all formulas fine but still i...

I have written all formulas fine but still its showing 0 as percentage please help me in this program user have to enter obtain score and total score

SCM, advantages of E-SCM?

advantages of E-SCM?

Graphs, Find the corresponding matrix of the digraph above

Find the corresponding matrix of the digraph above

Define virtualization, Question 1 Define virtualization. Discuss the benef...

Question 1 Define virtualization. Discuss the benefits of virtualization. Discuss the benefits of server virtualization Question 2 What is para virtualization? How para vi

Networking, what is computer topology .

what is computer topology .

BUS STRUCTURE, Ask question #WHAT IS TWO BUS STRUCTURE

Ask question #WHAT IS TWO BUS STRUCTURE

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