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

Desktop computer, Desktop computer: Desktop computer is popularly know...

Desktop computer: Desktop computer is popularly known as personal computer (PC). As the name suggest, it is generally small in size and fitted on the top of a desk which can b

Summery, This is an article and I want great synopsis for the article

This is an article and I want great synopsis for the article

Software, Software Computer cannot be used without a software in...

Software Computer cannot be used without a software in it. It is the software which gives instructions to the hardware of the computer so as to work all devices in tande

Algorithm, algorithm to determine if a number is odd or even

algorithm to determine if a number is odd or even

Flowchart, create a flowchart showing average score for the 3 quizzes assum...

create a flowchart showing average score for the 3 quizzes assume that there are 3 sections each having 5 students the only valid number to be entered is 1-100 for the quizzes shou

Define Multilevel Queue Scheduling?, • A multilevel queue scheduling algori...

• A multilevel queue scheduling algorithm divides the ready queue in several separate queues, for example • In a multilevel queue scheduling processes are lastingly assigned to one

operator, what is operator and operator associativel

what is operator and operator associatively

Excell, grades computation

grades computation

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