URL Services has two divisions: Basic Web Pages and Custom Web Pages. Ricky Vega, manager of Custom Web Pages, wants to find out why Custom Web Pages is not profitable. He has prepared the reports that appear on the next page. 1. How will URL Services be affected if the Custom Web Pages Division is eliminated? 2. How will URL Services be affected if the Design segment of Custom Web Pages is eliminated? 3. What should Ricky Vega do? What additional information would be helpful to him in making thedecision?

How will URL Services be affected if the Custom Webpages Division is eliminated?

If the Custom Webpages Division is eliminated:

a.

URL Services will

b.

The total segment margin and operating income

by

c.

The revised

will be

How will URL Services be affected if the Design segment of Custom Webpages is eliminated?

If the Design segment of Custom Webpages is eliminated:

a.

URL Services will

b.

The total company's segment margin

by

to

c.

Custom Webpages' segment margin

to

This is due to the elimination of the

of