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

7489 ttl ram device, The 7489 TTL Ram Device: The 7489 TTL Ram package ...

The 7489 TTL Ram Device: The 7489 TTL Ram package has 64 memory cells, each cell is capable of holding a single bit of data.  The cells are organised into locations, and each l

Idk, A rock weighs 33.6 N on Planet X and 49 N on Earth. What is g on Plane...

A rock weighs 33.6 N on Planet X and 49 N on Earth. What is g on Planet X

Describe Priority Scheduling algorithm of operating system?, Priority Sched...

Priority Scheduling • The fundamental idea is straightforward: each process is assigned a priority, and priority is permitted to run. Equal-Priority processes are scheduled in FCF

Data structure, i have attached all files in zip folder, all files are give...

i have attached all files in zip folder, all files are given and act as headers, all what you need to work on: oaa.h "partially given" , wordbench2.h "needed", wordbench2.cpp "nee

Transfer instructions, They are utilized to move the contents of the operat...

They are utilized to move the contents of the operators. Each instruction can be used with many different modes of addressing. MOV MOVS (MOVSB) (MOVSW) MOV INSTRUCTION Principle: D

Probability, Mike sells on the average 15 newspapers per week (Monday – Fri...

Mike sells on the average 15 newspapers per week (Monday – Friday). Find the probability that 2.1 In a given week he will sell all the newspapers [7] 2.2 In a given day he will sel

Languages used in artificial intelligence, R e presentations/Languages Us...

R e presentations/Languages Used: Many people are taught Artificial Intelligence with the opening line: "The three most essential things in Artificial Intelligence are repres

Describe, Question: a) Illustrate, in detail, what is virtual memory? ...

Question: a) Illustrate, in detail, what is virtual memory? b) The Memory Management Unit is responsible for the translation of virtual addresses to their corresponding phy

Accessing folders and printers, Accessing Folders and Printers Accessi...

Accessing Folders and Printers Accessing folders, files and printers of another computer is as easy as accessing another computer. To access folders and printers of another c

Basic description of a computer system, The main components of a computer ...

The main components of a computer system at a basic level Computer System We call computer system to the whole configuration of a computer, as well as the peripheral units and the

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