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

Explain different types of attacks, Question 1 Explain synchronous and asy...

Question 1 Explain synchronous and asynchronous Data Replication Question 2 Write a short note on Access Time, Latency, Transfer Time, and Streaming Tape Question 3

How to avoid race conditions with critical section?, • The key to preventi...

• The key to preventing problem involving shared storage is get some way to prohibit more than one process from reading and writing the shared data concurrently. That part of the p

Threading Module of python, The latest threading module comprised with Pyth...

The latest threading module comprised with Python 2.4 provides much more powerful, high-level hold for threads than the old thread module. The threading module depictions all the m

Kirchhoff’s law, A car battery is of 12 V. Eight dry cells of 1.5 V each ...

A car battery is of 12 V. Eight dry cells of 1.5 V each connected in series can give 12 V. But such cells are not used in starting a car. Why?

Database assignment help , What îs exactly data type and Database Assignme...

What îs exactly data type and Database Assignment Help  ? We have can take several points of view, A data type îs set of values — char typically has 256 distinct values, into has

Buses, BUSES It can be seen from Figure 4 that there are three buses ...

BUSES It can be seen from Figure 4 that there are three buses - the data bus, the address bus, and the control bus. Each bus consists of a group of parallel wires. The da

C++, whats the out put of int main(){ int n=310; funcone(n); functwo(&n); ...

whats the out put of int main(){ int n=310; funcone(n); functwo(&n); cout return 0; } void funcone(intn) n=240; } void func two(intn*) { n=120; }

Basic, WAP TO ACCEPT MARKS OF THREE SUBJECT FOR STUDENT & CALCULATE TOTAL M...

WAP TO ACCEPT MARKS OF THREE SUBJECT FOR STUDENT & CALCULATE TOTAL MARKS AND PERCENTAGE

SCM, advantages of E-SCM?

advantages of E-SCM?

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