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 architecture, Consider a CPU that implements two parallel fetch-ex...

Consider a CPU that implements two parallel fetch-execute pipelines for superscalar processing. Show the performance improvement over scalar pipeline processing and no-pipeline pro

History of e-mail, History of E-mail: Internet based E-mail system was...

History of E-mail: Internet based E-mail system was designed by a Computer engineer - Ray Tomlinson in late 1971 while working with ARPANET. Tomlinson used a file transfer pro

MIS, information system providors

information system providors

I/O Stream and Arrays, Write a program that: 1. Ask the user for names of t...

Write a program that: 1. Ask the user for names of the two iput files and a name of an output file. The two input files contain integers in any order. Eachimput file contains no mo

Pseudocode, How Much Insurance? Many financial experts advise that property...

How Much Insurance? Many financial experts advise that property owners should insure their homes or buildings for at least 80 percent of the amount it would cost to replace the st

Theory of computation, If L is a regular language show that L U {a} is regu...

If L is a regular language show that L U {a} is regular

Project of interactive powerpoint in human computer , Hi There, can you h...

Hi There, can you help me with my small project please, i have sent it yesterday and you dont replay. can you please ethir lem me know you can do it or no Regrads Meshari

E-learning, E-learning: E-learning is one of the most used terms on th...

E-learning: E-learning is one of the most used terms on the Internet that describes any form of learning that is facilitated academically by the electronic means. Such means m

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