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:

Total annual fixed costs are $78,000.
One of Web Services' two graphic designers, Taylor Campbell, is planning to take maternity leave in July and August. As a result, there will be only one designer available to perform the work, and design labor hours will be a resource constraint. Orozco plans to help the other designer complete the projected 160 orders for basic pages and 30 orders for custom pages for those two months. However, he wants to know which type of page Web Services should advertise and market. Although custom pages have a higher contribution margin per service, each custom page requires 12.5 design hours, whereas basic pages require only 1 design hour per page. On which page type should his company focus? Explain your answer.

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Service revenue per page Variable costs per page Coneribution margin per page Basic Pages $200 $123 Custom Pages $750 600 $150