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

Describe circuit switching and message switching, Question 1 List the Basi...

Question 1 List the Basic essential components of a computer network Question 2 What are the functions of (i) Routers (ii) Bridges Question 3 What are the advantag

Memory management, Memory Management: The purpose of the memory mana...

Memory Management: The purpose of the memory management system is to load programs into memory in such a way as to give each program loaded  the memory that it requires for

Arithmetic and logic unit, Arithmetic and Logic Unit: The Arithmetic a...

Arithmetic and Logic Unit: The Arithmetic and Logic Unit is that part of the CPU that actually performs arithmetic and logical operations on data. The CU, CPU registers and me

Visual basics, Assume that s is a string variable  that is supposed to con...

Assume that s is a string variable  that is supposed to contain a value to be converted to integer. Write a fragment of code that converts the value to integer variable  and displ

Hrm , online project on hrm i.e index page

online project on hrm i.e index page

Software licensing, Software Licensing: Until early 1970's, sharing of...

Software Licensing: Until early 1970's, sharing of software was the accepted norm. Hardware came bundled with software products which could be freely redistributed and the acc

Purchasing a database program, When purchasing a database program, you must...

When purchasing a database program, you must have a clear idea of what you need it for. Ask yourself the following questions. (1) Will it perform all (he operations necessary f

Output devices, Output devices: One of the most important output devic...

Output devices: One of the most important output devices in computer system is its screen commonly called monitor. It is an output device and displays all the programs and app

CAI, What is CAI? Explain its pitfalls

What is CAI? Explain its pitfalls

Distinguish between the cryptoprovider and the managed class, QUESTION ...

QUESTION (a) Using the Luhn 10 check formula verify whether the following account number is compliant: 49927398716. Show details of your workings (b) Why is it advisable to

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