1.Monthy contribution margin per subscriber = Revenue per subscriber – variable costs per subscriber
= 31.49-3.75-9-9%*31.49
= $16.9059
i.e. $16.91
2.Estimated monthly fixed costs = 55000+1,200,000/12 + 120,000
= $275,000
1.Operating income = Contribution margin – fixed costs
= 19000*16.91 - 275000
= $46290
i.e. $46290
2.Break even subscribers = Fixed costs/Contribution margin per subscriber
= 275000/16.91
= 16263 subscribers
3.Required = (30000+275000)/16.91
= 18037 subscribers
4.Required = (30000/0.68 + 275000)/16.91
= 18872 subscribers
1.contribution margin earned = 19000*16.91= $321290
Desired Profit = $30000
Other fixed costs = 55,000 + 1200000/12 = $155000
Maximum monthly operating fixed costs = $136,290
points for Part A, you must answer both questions correctly; to get the eight points for...
PLEASE ANSWER PART C******** chi Part c is worth four points. To get the eight points for Part A, you must answer both questions correctly; to get the points for Part B, you must answer all four questions correctly. You get eight tries on Part A, eight on Part B, a CableVision has been approached by the City of Mirada to run its cable operations in 2019. After negotiating with key parties, CableVision has made the following agreements: It will...
This problem contains three parts. In Part A, you are asked to determine the parameters of the profit function - the contribution margin and the fixed costs. You should not move on to Parts B and C until you get Part A correct, or until you use up all of your tries. The correct profit function parameters will be given to you after you have completed Part A - you should use these parameters in Parts B and C. The...
This problem contains three parts. In Part A, you are asked to determine the parameters of the profit function - the contribution margin and the fixed costs. You should not move on to Parts B and C until you get Part A correct, or until you use up all of your tries. The correct profit function parameters will be given to you after you have completed Part A - you should use these parameters In Parts B and C. The...
ableVision has been approached by the City of Mirada to run its cable operations in 2020. After negotiating with key parties, CableVision has made the following agreements: It will offer Mirada residents a basic set of 25 cable television stations at a rate of $32.99 per month. It will pay the city $110,000 per month plus $3.25 of the monthly cable subscriber rate per month to maintain the physical facilities. It will actually pay another company an annual fixed fee...
This problem contains three parts. In Part A, you are asked to determine the parameters of the profit function - the contribution margin and the fixed costs. You should not move on to Parts B and C until you get Part A correct, or until you use up all of your tries. The correct profit function parameters will be given to you after you have completed Part A - you should use these parameters in Parts B and C. The...
ableVision has been approached by the City of Mirada to run its cable operations in 2020. After negotiating with key parties, CableVision has made the following agreements: It will offer Mirada residents a basic set of 25 cable television stations at a rate of $32.49 per month. It will pay the city $1,000,000 per year plus $3.00 of the monthly cable subscriber rate per month to maintain the physical facilities. It will actually pay another company a monthly fixed fee...
ableVision has been approached by the City of Mirada to run its cable operations in 2020. After negotiating with key parties, CableVision has made the following agreements: • It will offer Mirada residents a basic set of 25 cable television stations at a rate of $31.99 per month. • It will pay the city $80,000 per month plus $2.75 of the monthly cable subscriber rate per month to maintain the physical facilities. • It will actually pay another company an...
ableVision has been approached by the City of Mirada to run its cable operations in 2020. After negotiating with key parties, CableVision has made the following agreements: It will offer Mirada residents a basic set of 25 cable television stations at a rate of $33.99 per month. . It will pay the city $80,000 per month plus $3.75 of the monthly cable subscriber rate per month to maintain the physical facilities. . It will actually pay another company an annual...
ableVision has been approached by the City of Mirada to run its cable operations in 2020. After negotiating with key parties, CableVision has made the following agreements: • It will offer Mirada residents a basic set of 25 cable television stations at a rate of $30.99 per month. • It will pay the city $115,000 per month plus $2.75 per cable subscriber per month to maintain the physical facilities. • It will actually pay another company an annual fixed fee...
ableVision has been approached by the City of Mirada to run its cable operations in 2020. After negotiating with key parties, CableVision has made the following agreements: . It will offer Mirada residents a basic set of 25 cable television stations at a rate of $33.99 per month. • It will pay the city $80,000 per month plus $3.75 of the monthly cable subscriber rate per month to maintain the physical facilities. • It will actually pay another company an...