1.Monthy contribution margin per subscriber = Revenue per subscriber – variable costs per subscriber
= 31.49-2.75-9-8%*31.49
= $17.2208
i.e. $17.22
2.Estimated monthly fixed costs = 100,000+730,000/12 + 125,000
= $285,833.33
1.Operating income = Contribution margin – fixed costs
= 17000*17.22 – 285,833.33
= $6,906.67
i.e. $6,907
2.Break even subscribers = Fixed costs/Contribution margin per subscriber
= 285,333.33/17.22
= 16,569.88 subscribers
i.e. 16,570 subscribers
3.Required = (21000+285,333.33)/17.22
= 17,789 subscribers
4.Required = (21000/0.68 + 285,333.33)/17.22
= 18,363 subscribers
1.Required contribution margin = 21000+285,333.33 = $306,333.33
Other fixed costs = 100000 + 730,000/12 = $160,833.33
Maximum monthly operating fixed costs = $145,500
ableVision has been approached by the City of Mirada to run its cable operations in 2020....
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 $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 $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...
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 $29.99 per month . It will pay the city $120,000 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...
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 of...
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 $85,000 per month plus $3.00 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 $32.49 per month. • It will pay the city $100,000 per month plus $4.00 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 $32.99 per month. • It will pay the city $1,300,000 per year plus $2.75 of the monthly cable subscriber rate per month to maintain the physical facilities. • It will actually pay another company a...