Question

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 offer Mirada residents a basic set of 25 cable television stations at a rate of $33.99 per month. . It will pay the city $1,000,000 per year plus $2.50 per cable subscriber per month to maintain the physical facilities. It will actually pay another company a monthly fixed fee of $55,000 plus $8.50 per cable subscriber per month to broadcast the 25 channels. CableVision estimates that operating costs for billing, program news mailings, etc. will be $120,000 per month plus 8 CableVision has several questions about its monthly revenues, costs, and profits in 2019 % of monthly revenue. REQUIRED [ROUND YOUR ANSWER TO PART A, QUESTION İ TO THE NEAREST CENT; ROUND ALL OTHER ANSWERS TO THE NEAREST UNİT OR NEAREST DOLLAR Part A (8 tries: 8 points) 1. What is the estimated monthy contribution margin per cable subscriber for CableVision in 2019 20.27 2. What are the estimated total monthly fixed costs for CableVision in 2019? 1,124,583 #2 IS INCORRECT Sumwr Incorrect. Tries 3/8 Previous Tries Subrmit Answer Part B (8 tries; 8 points) 1. What is CableVision's estimated monthly operating income in 2019 if 19,000 residents subscribe? 2. How many monthly subscribers would be required for CableVision to break even in 2019? 3. How many monthly subscribers would be required for CableVision to earn $26,000 per month in 2019 4. Assuming a tax rate of 31%, how many monthly subscribers would be required for Cablevision to earn $26,000 per month in 2019? Submit Answer Tries 0/8 Part C (4tries; 4 points) $26,000 per month in 2019 (ignore taxes)? some of CableVision's managers are uncertain about their estimate of monthly fxed egcrating costs. Assuming that 22,000 residents subscribe, how large can monthly fixed operating costs b Submit Answer Tries 0/4 Threaded View Chronological View Other Views as NEW 32 F3 FS 2 3

PLEASE ANSWER PART C********

Answer 1

No of Residents Subscribe				22000
Monthly Fixed Operating Cost to earn $ 26000 per month
Selling Price				$33.99
Less: variable Costs
Per Cable Cost Maintenance			2.5
Per Cable Broadcast			8.5
Billing , Program , newsmailing			2.7192
	Total			$14
Contribution per unit				$20.27
Other ascertained Fixed Costs per year
Maintenance				1,000,000
Broadcast		55000*12		660,000
Total				1,660,000
Total Contribution = No fo Subscribers * Contribution per unit
Total Contribution per year =		22000*20.27*12
		5351280
Desired Profit per year			26000*12	$312,000
Fixed Operating Cost to earn $ 26000 -			Contribution-Other Fixed Costs- Desired Profit
			5351280-1660000-312000
			3379280
Monthly Operating Fixed Costs				3379280/12
				281606.6667
To earn the monthly profit of $ 26000, the monthly fixed operating cost for cable vision can be upto$ 2,81,607/-