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

What is the definition of macro?, Definition of the macro A macro is a col...

Definition of the macro A macro is a collection of repetitive instructions in a program which are codified only one time and can be used as many times as required. The major differ

Environment for intelligent agents-artificial intelligence, Environments ...

Environments We have seen that intelligent agents might take into account certain information when   choosing   a   rational   action, by  including information from its sensor

Unix, How do I change file permissions? Every time I execute chmod commands...

How do I change file permissions? Every time I execute chmod commands it tells me permission denied.

C language, parent and child process using c language

parent and child process using c language

Inforamtion infrastructure and services, benefit a company derive from mana...

benefit a company derive from managing it own information technology

Hotel database, Create a database,show all ojectives and give a fruitful in...

Create a database,show all ojectives and give a fruitful introduction and also state how it will be implemented

Coaxial cables, Coaxial Cables: Another metallic transmission medium w...

Coaxial Cables: Another metallic transmission medium which offers a large bandwidth, is the coaxial cable. Such cables consist of an outer protective shell made of copper tube

Explain what is rmi, QUESTION (a) Explain what is RMI? (b) Draw a di...

QUESTION (a) Explain what is RMI? (b) Draw a diagram showing the different parts of the Java RMI architecture. (c) What is the function of the RMI security manager and RM

Input devices, Input Devices Keyboard Keyboard is the dev...

Input Devices Keyboard Keyboard is the device through which the commands, instructions required for execution of a program is entered. It consists of a number of

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