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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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