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Web Services, a small company owned by Simon Orozco, provides web page services to small businesses. His services include the preparation of basic pages and
Web Services, a small company owned by Simon Orozco, provides web page services to small businesses. His services include the preparation of basic pages and custom pages. The following summary of information will be used to make several short-run decisions for Web Services:
Basic | Custom | |
Service revenue per page | $200 | $750 |
Variable costs per page | 77 | 600 |
Contribution margin per page | $123 | $ 150 |
Total annual fixed costs are $78,000. One of Web Services
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