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

Flowchart, i need help with flowcharting a procedure

i need help with flowcharting a procedure

Identify the critical races, 1. The standard way for debuggers to plant bre...

1. The standard way for debuggers to plant breakpoints in a program in RAM (whatever the processor instruction set) is to save the breakpointed instruction and replace it by a jump

Web Design Project, Hello - What is the turn around time for a 6 page websi...

Hello - What is the turn around time for a 6 page website.

Syntax of a Procedure in assembly language, There are two kinds of procedur...

There are two kinds of procedures, the intrasegments, which are found on the similar segment of instructions and the inter-segments which can be stored on dissimilar memory segment

Opening documents situated on different computers - network, Opening Docume...

Opening Documents Situated on Different Computers In order to work with documents situated on other computers, you need sufficient rights to access the folder in which it is

Write a brief note on firewalls, Question 1 Explain the TCP/IP protocol la...

Question 1 Explain the TCP/IP protocol layers Question 2 Write a note Fiber Distributed Data Interface (FDDI) Question 3 Discuss on File Transfer Protocol (FTP)

Hypertext transfer protocol (http), It's a common protocol or "language" co...

It's a common protocol or "language" computers use to "speak" to each other over the Web.

Flowchart, Fahrenheit to celsius convertion

Fahrenheit to celsius convertion

Tech ed, can you help me convert binary into decimals?

can you help me convert binary into decimals?

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