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

Artificial intelligence, Artificial Intelligence Artificial Intelligen...

Artificial Intelligence Artificial Intelligence is difficult science to explain, as it has fuzzy borders with  computer science, mathematics,  philosophy, physics,  psychology

Principal structures in flow charting, PRINCIPAL STRUCTURES IN FLOW CHARTIN...

PRINCIPAL STRUCTURES IN FLOW CHARTING Structured programing calls for the usage of four principal structures to help simplify the program. They are:     Sequential contro

Line decoders, number of 4 to 16 line decoders required to get 8 lto 256 li...

number of 4 to 16 line decoders required to get 8 lto 256 line decoder

Hangman, Aim This assignment is intended to assess your skills in understan...

Aim This assignment is intended to assess your skills in understanding and interpreting a moderately complex problem, designing a solution to the problem and implementing the desig

Systems Analysis and Design, Ask question #MiniProfessional and Scientific ...

Ask question #MiniProfessional and Scientific Staff Management (PSSM) is a unique type of temporary staffing agency. Many organizations today hire highly skilled, technical employe

Why is the atm selected as a transport network in 3g, Why is the ATM select...

Why is the ATM selected as a transport network in 3G? Answer: ATM provides efficient support for transmission of voice, data, and video ATM provides QoS guarantee and reliability

Software, Software: A computer system consists of two parts - hardware...

Software: A computer system consists of two parts - hardware and software. The first part, computer hardware, refers to all the visible components of the computer system:  key

Assembly language, Assembly language : Assembly language is a low level...

Assembly language : Assembly language is a low level programming language similar to machine language, but far easier to write and understand because machine language binary in

Completeness in search - artificial intelligence, Completeness in search - ...

Completeness in search - artificial intelligence: It's also importance trying to calculate the number of solutions to a problem, and the density of those solutions amongst the

DBMS, define transaction with its properties? And also explain the transiti...

define transaction with its properties? And also explain the transitive dependencies with form

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