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

Open source software, Open Source Software: Open Source Software (OSS)...

Open Source Software: Open Source Software (OSS) is software that comes with source code, and importantly also provides rights (typically reserved for copyright holders) to st

Completeness in search - artificial intelligence, Completeness in search - ...

Completeness in search - artificial intelligence: It's also importance trying to calculate the number of solutions to a problem, and the density of those solutions amongst the

Data input , Data Input : There are several aspects of data input that nee...

Data Input : There are several aspects of data input that need careful consideration. We shall assume that in a laboratory environment you are mainly concerned with entering data

Alternative approaches for acquiring software, Alternative approaches for a...

Alternative approaches for acquiring software: There are some alternative approaches for acquiring software. They are:  i)  'off the shelf' software package  ii)  'turnk

Describe CPU registers , The CPU has four internal registers, each of 16 bi...

The CPU has four internal registers, each of 16 bits. The first four, AX, BX, CX, and DX are common use registers and can also be used as 8 bit registers, if used in such a way it

Write a note on modems, Question 1 Write a note on modems Question ...

Question 1 Write a note on modems Question 2 What are the Safe Chatting Rules Question 3 Explain three basic kinds of hypertext links Question 4 Write a no

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