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

Discuss the attributes of speech codec, Question 1 What is mobile telephon...

Question 1 What is mobile telephone initialization? Explain the three main goals of this procedure Define GSM system operations Introduction to mobile telephone initializ

Keystroke logger and data-stealing, Keystroke logger and Data-stealing: ...

Keystroke logger and Data-stealing: Keystroke loggers: This is a program, once installed on the system, which intercepts the keys when entering the password or the Credit Ca

Q1, Write a half-page summary explaining IP spoofing.

Write a half-page summary explaining IP spoofing.

Language of digital computers, Language of Digital Computers: Digital ...

Language of Digital Computers: Digital computers are electronic devices which operate on two valued logic (On and OFF). The ability of a transistor to act as a switch is the k

Unix fork program help, Will someone be able to help me with this I have tw...

Will someone be able to help me with this I have two text files that I can send. I am confused, is someone looking at this or is it still waiting to be assigned? this is the code

Computer databases , COMPUTER DATABASES: As would be evident from the ...

COMPUTER DATABASES: As would be evident from the foregoing description, literature search is essentially a process of information retrieval. The term "Information Retrieval" w

What are the three basic security provided by ssl, QUESTION (a) Can SSL...

QUESTION (a) Can SSL be used to encrypt email data? Justify your answer (b) What are the three basic security provided by SSL? (c) State the port number used by applicati

Objectives of laboratory organisation and management, Objectives When y...

Objectives When you have completed all the work in this unit you should be able to: List the basic components of a personal computer system, 1. describe the use of comput

Abstraction is a popular way to organize concurrent programs, 1. The proces...

1. The process abstraction is a popular way to organize concurrent programs, but it is not the only choice. An alternative to the process abstraction is to design a single-threaded

Stack, How to write an algorithm to reverse the order of elements on a stac...

How to write an algorithm to reverse the order of elements on a stack s using two additional stacks

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