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

Data structure and algorithms, need help with global alignment and local al...

need help with global alignment and local alignment for the sequences X and Y

C program, #write a c program to print ant and rod #

#write a c program to print ant and rod #

Algorithm - programming language, Algorithm : Once a problem has been defi...

Algorithm : Once a problem has been defined precisely, a procedure or process must be designed to produce the required output from the given input. Since a computer is a machine t

Democracy and ICT, Ask questio Discuss the idea of democracy and its overl...

Ask questio Discuss the idea of democracy and its overlapping meanings for IS design. How would you democratically design IS? How does participation help the practice of democrac

Describe the protocol used by the mmu, Question 1: a) A distinction is...

Question 1: a) A distinction is often made between computer architecture and computer organisation. Describe, using examples, the meaning of computer architecture. b) Name

Merchant problem, Pebble Merchant Problem Description There is a pebble mer...

Pebble Merchant Problem Description There is a pebble merchant. He sells the pebbles, that are used for shining the floor. His main duty is to take the length of the room’s sides.

Telephobn directory, #que1) Create telephone directory. • The heading shoul...

#que1) Create telephone directory. • The heading should be 16-point Arial font in bold • The rest of the document should use 10-point font size • Other headings should use 10-point

Software development, requirement analysis and specification for online vot...

requirement analysis and specification for online voting

Magnetic media, what are the five precautions to be observed when handling ...

what are the five precautions to be observed when handling magnetic media?

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