Part A
1. Estimated monthly contribution margin per cable subscriber =
Selling price - Variable costs
= $30.99 - (2.75+8+30.99*9%) = $17.4509
2. Estimated monthly fixed costs = $115000+820000/12+125000 = $308333
Part B
1. Monthly Operating Income for 17000 subscribers = 17000 x
$17.4509 - $308333 = ($11668) or ($11683)
2. Break Even = Fixed Costs / Contribution margin per
subscriber
= $308333 / 17.45 = 17669
3. Target to earn $22000 = (Fixed Costs+Target Profit) /
Contribution margin per subscriber
= ($308333+22000) / 17.45 = 18930
4. Profit before tax = $22000/0.68 = $32353
Target to earn $22000 after tax = (Fixed Costs+Target Profit) /
Contribution margin per subscriber
= ($308333+32353) / 17.45 = 19523
Part C
Monthly Fixed Operating Costs = 20000 x $17.4509 -
($115000+820000/12) - $22000 = $143685 or $143667
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 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 $31.49 per month. • It will pay the city $100,000 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 $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 $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 $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 $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 $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 $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...