Problem

Planning and control decisions, Internet company. PostNews.com offers its subscriber...

Planning and control decisions, Internet company. PostNews.com offers its subscribers several services, such as an annotated TV guide and local-area information on weather, restaurants, and movie theaters. Its main revenue sources are fees for banner advertisements and fees from subscribers. Recent data are as follows:

The following decisions were made from June through October 2013:

a. June 2013: Raised subscription fee to $25.50 per month from July 2013 onward. The budgeted number of subscribers for this monthly fee is shown in the following table.

b. June 2013: Informed existing subscribers that from July onward, monthly fee would be $25.50.

c. July 2013: Offered e-mail service to subscribers and upgraded other online services.

d. October 2013: Dismissed the vice president of marketing after significant slowdown in subscribers and subscription revenues, based on July through September 2013 data in the following table.

e. October 2013: Reduced subscription fee to $22.50 per month from November 2013 onward. Results for July–September 2013 are as follows:

1. Classify each of the decisions (a–e) as a planning or a control decision.

2. Give two examples of other planning decisions and two examples of other control decisions that may

be made at PostNews.com.

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Solutions For Problems in Chapter 1