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

Subroutine , Subroutine :   A subroutine  is a type of subprogram, a pi...

Subroutine :   A subroutine  is a type of subprogram, a piece of code within a larger program that performs a specific task and is relatively independent of the remaining code.

Multiplexing, draw the diagram to implement 32*1 mux by using 3 relevant ty...

draw the diagram to implement 32*1 mux by using 3 relevant type of mux

Block diagram of computer, Input unit: These are used to read data and tran...

Input unit: These are used to read data and transfer to primary memory contained in CPU through keyboard or floppy disk or mouse etc. Central Processing Unit (CPU): This consists o

Database management help, Suppose that you are writing a stored procedure t...

Suppose that you are writing a stored procedure to record new purchases. Suppose that you know that while your procedure is running, another stored procedure that records shipment

Data structuures, write a fuctions for MIDSQUARING hashing technique

write a fuctions for MIDSQUARING hashing technique

Data structure, #question.a tree has 0 off springs at each node. if it had ...

#question.a tree has 0 off springs at each node. if it had a label L, what will be the maximum number of nodes that the tree can have. only an expression involving the number of no

Help with this question, In a certain word game a player can buy vowels and...

In a certain word game a player can buy vowels and consonants. The first vowel is free; each additional vowel cost $1. The first two consonants are free; each additional constant c

Meaning of primary data, Problem 1 Research designs have a critical and...

Problem 1 Research designs have a critical and directive role to play in the research process. Explain the meaning of research design. Describe the various types of research de

Rooted tree, Ask qu The figure below shows a rooted tree, 756_Find the hei...

Ask qu The figure below shows a rooted tree, 756_Find the height.png 1.1. Find the height/level of the tree as shown above?estion #Minimum 100 words accepted#

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