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

Software, Software: A computer system consists of two parts - hardware...

Software: A computer system consists of two parts - hardware and software. The first part, computer hardware, refers to all the visible components of the computer system:  key

Explain digital multiplexers, Problem 1 Perform the following conversio...

Problem 1 Perform the following conversion a. (ABE) 16 =() 2 b. (101011) 2 =() 10 2 Explain how full adder adds three bits 3 Explain digital multiplexers

Software engineering, how will a poorly conducted feasibility study affect ...

how will a poorly conducted feasibility study affect an implemented system

Fuction to delete a record in phone book in c, function to delete a telepho...

function to delete a telephone book record in c programing using struct and objects...?

Find shortest path in network, Find shortest path from node 1 to node 10 in...

Find shortest path from node 1 to node 10 in the network shown in figure, also find shortest path from node 3 to node 10. Please write all steps to finding shortest path mechanism

Search strategies, Search strategies are evaluated along four main dimensio...

Search strategies are evaluated along four main dimensions. Name those dimensions and briefly describe each one

Software engineering, assignment 1:architectural design 2: component des...

assignment 1:architectural design 2: component design

Management information systems, how to introduce information system an in o...

how to introduce information system an in organization

Assignment, write an essay explaining the following: 1.Storage aspects a. D...

write an essay explaining the following: 1.Storage aspects a. Disk formatting, b.Disk boot block ,c.Bad block removal, d.Compensation.

Dfd, best example of dfd?

best example of dfd?

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