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

Communication channels, COMMUNICATION CHANNELS: A wire pair connecting...

COMMUNICATION CHANNELS: A wire pair connecting two telephones is the simplest circuit, allowing communication in both directions. Other channels include coaxial cables, optica

Factors and criteria for computer, what are the factors and criteria for co...

what are the factors and criteria for computer (from business point of view)?

Cg, function of electrostatic plotter

function of electrostatic plotter

Network control, Network Control, Engineering and Management Network co...

Network Control, Engineering and Management Network control in this sense involves traffic management, and the engineering of the networks to support varying traffic loads. In

Explain the working of bus connection, Question 1 Explain the working of B...

Question 1 Explain the working of Bus connection Question 2 Write a note on: Robotics and Voice Recognition Question 3 Describe the construction of CD-ROM Question 4

Define Interprocess Communication and its race condition?, In view of the f...

In view of the fact that processes frequently need to communicate with other processes therefore, there is require for a well-structured interaction, devoid of using interrupts, a

Programs - programming language, Programs - programming language: Prog...

Programs - programming language: Programs to implement algorithms on the computer must be written in a language that the computer can understand. It is fruitful, therefore, to

Debugging, Debugging Once a program has been written, it has to ...

Debugging Once a program has been written, it has to be tested first to ensure that it is free of errors. It is very normal that any program written will contain mistake

Server, Server In a network, the resources of computers comprising net...

Server In a network, the resources of computers comprising network are usually shareable. In fact, one of the main objectives of networking is to make the computing resources

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