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

Magnetic memory, Magnetic Memory:  In the above section we have seen v...

Magnetic Memory:  In the above section we have seen various types of semiconductor RAMs. These high speed semiconductor storage devices (i.e. RAMs) are expensive. So we need s

Probability, Mike sells on the average 15 newspapers per week (Monday – Fri...

Mike sells on the average 15 newspapers per week (Monday – Friday). Find the probability that 2.1 In a given week he will sell all the newspapers

Access time - storage devices, Access time: Access time: This is the t...

Access time: Access time: This is the time required to locate and retrieve stored data from the storage unit in response to a program instruction. That is the time interval be

Nursing care activity module, Nursing Care Activity Module Retrievi...

Nursing Care Activity Module Retrieving of identification data of patient  Assessment of the patient  - Physical - Mental - Personal - Socio-c

Ultrasonic waves, Ultrasonic Waves: Sound waves outside the audible range o...

Ultrasonic Waves: Sound waves outside the audible range of humans. Ultrasonic waves consist of frequencies greater than 20 kHz and exist in excess of 25 MHz. Applications include i

What do you mean by an interrupt, Question 1 . Explain briefly the function...

Question 1 . Explain briefly the functional units of a computer Question 2 . What do you mean by an interrupt Question 3 . Explain fetching a word from the memory

Assembly language, Assembly language : Assembly language is a low level...

Assembly language : Assembly language is a low level programming language similar to machine language, but far easier to write and understand because machine language binary in

Programs - programming language, Programs - programming language: Prog...

Programs - programming language: Programs to implement algorithms on the computer must be written in a language that the computer can understand. It is fruitful, therefore, to

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