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

Counters and registers, design a synchronous, recycling, MOD-12 counter wit...

design a synchronous, recycling, MOD-12 counter with D FF''s. Use the states 0000 through 1011 in the counter.

Programming languages, Programming Languages A number of programming la...

Programming Languages A number of programming languages are available for program writing. These languages can be classified as follows:     Machine language     Assem

Text, text graphics audio video

text graphics audio video

First generation of computers, THE FIRST GENERATION (1949-1955) ...

THE FIRST GENERATION (1949-1955) The computers in this generation have the following characteristics:     Physically large in size     Inflexible in operations

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

ASP.net, educational website project

educational website project

Cost of computer, If you have to consider the installation of communication...

If you have to consider the installation of communications packages, the same questions have to be asked. (a) Does the software and the modem support the necessary transmission

Sma* search - artificial intelligence, SMA* Search-Artificial intelligence ...

SMA* Search-Artificial intelligence IDA* search is good from a memory point of view. actually it may  be criticised for not using enough memory - utilizing  more memory may inc

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