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

Finding average marks, Problem In the Excel sheet, input the marks of a...

Problem In the Excel sheet, input the marks of any 5 students with 5 subjects and find the average marks, maximum marks, minimum marks obtained by the student. Using Excel s

Diskless workstations, Diskless workstations:    Most people assume th...

Diskless workstations:    Most people assume that the operating system is stored on a disk that is connected directly to the computer, but this is not necessarily true. If the

Explain data movement ?, In any program it is essential to move the data in...

In any program it is essential to move the data in the memory and in the CPU registers; there are a number of ways to do this: it can copy data in the memory to a number of registe

What are the uses of the internet, Question 1 What are many of the modern ...

Question 1 What are many of the modern browsers in use today? Describe all in detail Question 2 Write a long note on the uses of Domain Names Question 3 What are the use

System software, System software: System software helps run the  compu...

System software: System software helps run the  computer hardware and system. It is designed to control the operations of a computer and coordinate all external devices like c

Evolution of a computer, EVOLUTION OF A COMPUTER: Although 'computer',...

EVOLUTION OF A COMPUTER: Although 'computer', as we understand it today, is relatively of recent innovation, its development rests on centuries' of research. This section pres

Write a program to solve a maze 10x10, write a program to solve a 10x10 maz...

write a program to solve a 10x10 maze. prompt the user for an input text file containing ten rows(ten characters on each row). Use following characters in the input file: * startin

Artificial intelligence-internal structure of agents, Internal Structure of...

Internal Structure of Agents We have looked at agents in conditions of their outside influences and behaviors: they take effort from the atmosphere and do lucid actions to chan

What is Assembler Programming?, To build assembler programs with TASM prog...

To build assembler programs with TASM programs is a different program structure than from using debug program. It''s important to comprise the subsequent assembler commands: ..CODE

Computers, Computers One of the most  important invention in the desig...

Computers One of the most  important invention in the design of digital  circuits  is that  of the general- purpose "stored program" computer or device. Computers are a partic

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