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

Explain application and system software, Question 1 Explanation of impact ...

Question 1 Explanation of impact of Information Technology on governments Question 2 Explain application and system software Question 3 Briefly explain real time a

What is a middleware, QUESTION (a) Using diagrams, describe the 2-tier ...

QUESTION (a) Using diagrams, describe the 2-tier and 3-tier architectures. (b) What is a middleware? Explain the functions of a middleware. Give two examples of middleware.

Discuss the objectives of query processing, Question 1 Differentiate betwe...

Question 1 Differentiate between PL/SQL functions and procedures Question 2 Draw the diagram of logical structure of oracle database and explain it in brief Question 3 D

Word processing software, Word Processing Software : The main use for word...

Word Processing Software : The main use for word processing is found in secretarial offices and small publishing companies. However, if you are involved in generating your own cor

Computer security, concepts and components of computer security

concepts and components of computer security

Optical mark recognition, Optical Mark Recognition (OMR): OMR is the s...

Optical Mark Recognition (OMR): OMR is the scanning of paper to detect the presence or absence of a mark in a predetermined position. Now days, it is used as an input device f

Register array, #queA register is a memory location surrounded by the CPU i...

#queA register is a memory location surrounded by the CPU itself, designed to be rapidly accessed for purposes of fast data retrieval. Processors normally hold a register array, wh

Adding macros to ms word 2010 for a particular format, Project Setting up ...

Project Setting up Microsoft Word 2010 to automatically handle as much as possible of the NDSU Graduate School requirements for a disquisition. Accessible from the Graduate Schoo

The microprocessor, THE MICROPROCESSOR The three fundamental units, whi...

THE MICROPROCESSOR The three fundamental units, which comprise a CPU, have now been discussed in general terms.  So too has a microprocessor, because a microprocessor can be de

Digital video disks, Digital Video Disks: DVD stands for Digital Video...

Digital Video Disks: DVD stands for Digital Video Disks or Digital Versatile Disks. A DVD stores much more data than a CD-ROM. Its capacities are 4.7GB, 8.5GB, and 20GB etc. T

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