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

Algorithms and psuedocodes, write an algorithm and psuedo code for the oper...

write an algorithm and psuedo code for the operation of the cramer`s rule

What is atm cell, Header contains routing and error control information Pay...

Header contains routing and error control information Payload carries the actual user information, either voice, data or video

Object oriented programming, Write a method called Grade that takes a numer...

Write a method called Grade that takes a numeric score and returns a letter grade. Use the rule that 90 to100 is an A, 80 to 89 a B, 60 to 79 is a C, 45 to 59 is a D, and less th

Outline the five main steps in the web design process, QUESTION (a) Out...

QUESTION (a) Outline the five main steps in the Web Design Process (b) Draw an annotated diagram explaining how data is transmitted to web servers during a standard form sub

One dimensional array, One dimensional array:  A one-dimensional arra...

One dimensional array:  A one-dimensional array  is a structured collection of elements  that can be accessed individually by specifying the position of a component with  ind

Ida* search-artificial intelligence, IDA* Search-Artificial intelligence: ...

IDA* Search-Artificial intelligence: A* search is a sophisticated and successful search strategy. yet, a problem with A* search is that it might  keep every states in its memor

Lines and Indentation in python , One of the first caveats programmers come...

One of the first caveats programmers come across when learning Python is the reality that there are no braces to point to blocks of code for class and function definitions or flow

Iterative deepening search-artificial intelligence, Iterative Deepening Sea...

Iterative Deepening Search- Artificial intelligence: So, breadth first search is guaranteed to find a solution (if one exists), but it grape whole memory. However, Depth first

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