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

Computer security, concepts and components of computer security

concepts and components of computer security

Flow decomposition technique to list the cycles, QUESTION (a) Consider ...

QUESTION (a) Consider the graph below, use the Flow Decomposition technique to list the cycles and paths produced.                                                (b) Pr

Hill climbing - artificial intelligence , Hill Climbing - artificial intell...

Hill Climbing - artificial intelligence: As we've seen, in some particular problems, searching the search path from primly to goal state is the point of the exercise. In anothe

Functions, difference between recursion and iteration

difference between recursion and iteration

Algorithm implementation, Implementing the -Crochemore-Perrin algorithm Th...

Implementing the -Crochemore-Perrin algorithm The software must be functional, code must be clear and including comments and it must have a nice and decent user interface

What is meant by clock skew and clock drift among clocks, QUESTION (a) ...

QUESTION (a) Describe what is meant by Clock Skew and Clock Drift among clocks in a distributed system. (b) A clock is reading 08:25:46.0 (hr:min:sec) when it is discovered

Explain the construction of hard drive, Question 1 Classify and explain th...

Question 1 Classify and explain the different types of computers Question 2 List and explain the commonly used input devices Question 3 What is binary number system? Exp

Data structure and algorithms, need help with global alignment and local al...

need help with global alignment and local alignment for the sequences X and Y

Fhtjhnkjfdum, ryby db fgrh herbgh buyh hehg gvo hb bbithbs bgshbshdgbh bu...

ryby db fgrh herbgh buyh hehg gvo hb bbithbs bgshbshdgbh bubfvhb bs v h hjjg jdk jnmnv j

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