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

M s word., explain the steps to form a colourful card

explain the steps to form a colourful card

Socket programming, Important: • No cheating will be tolerated. • No late s...

Important: • No cheating will be tolerated. • No late submissions. Total Points for this programming assignment: 100 The goal of your programming assignment is to build and experim

Hypertext markup language (html), HTML is a Formatting language which is mo...

HTML is a Formatting language which is most commonly used for web documents.

Computer, what is the computer science

what is the computer science

College management system project, E-R diagram and details for college mana...

E-R diagram and details for college management system

Explain Debug program in assembly language , To make a program in assemble...

To make a program in assembler two choices exist, the earliest one is to use the TASM or Turbo Assembler, of Borland, and the next one is to use the debugger, generally we use this

Computer science, You recently returned some homework I completed but i lef...

You recently returned some homework I completed but i left of the final 10 questions. Should not take long just needs some commands interpreted. How much will it cost for me to get

Electronic digital, Design a BCD to excess 3 code converter using minimum n...

Design a BCD to excess 3 code converter using minimum number of NAND gates.

Software development, requirement analysis and specification for online vot...

requirement analysis and specification for online voting

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