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belka [17]
3 years ago
7

Break-Even Analysis Media outlets often have websites that provide in-depth coverage of news and events. Portions of these websi

tes are restricted to members who pay a monthly subscription to gain access to exclusive news and commentary. These websites typically offer a free trial period to introduce viewers to the website. Assume that during a recent fiscal year, one outlet spent $1,659,000 on a promotional campaign for its website that offered two free months of service for new subscribers. In addition, assume the following information: Number of months an average new customer stays with the service (including the two free months) 22 months Revenue per month per customer subscription $16 Variable cost per month per customer subscription $5 Determine the number of new customer accounts needed to break even on the cost of the promotional campaign. In forming your answer, (1) treat the cost of the promotional campaign as a fixed cost, and (2) treat the revenue less variable cost per account for the subscription period as the unit contribution margin. accounts
Business
1 answer:
kogti [31]3 years ago
6 0

Answer:

Break-even point= 7,900 new costumers

Explanation:

Giving the following information:

Assume that during a recent fiscal year, one outlet spent $1,659,000 on a promotional campaign for its website that offered two free months of service for new subscribers.

In addition, assume the following information: Number of months an average new customer stays with the service (including the two free months) 22 months Revenue per month per customer subscription $16 Variable cost per month per customer subscription $5.

Break-even point= fixed costs/ contribution margin

Fixed costs= 1,659,000

Contribution margin= (16*20)-(5*22)= 210

Break-even point= 1,659,000/210= 7,900 new costumers

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Tech Performance, Inc., completes programming and other tech services for Uno IT Products Corporation. When Uno IT’s computer sy
Nana76 [90]

Answer:

Kindly go through the Explanation.

Explanation:

While responding back Tech Performance who would be referred as a defendant in this occasion may opt for two of the response:

1. Tech Performance to file an answer & defend

The answer filed should include admit of statements and the allegations put across by Uno IT or to simply deny them & set defenses from the defendants part. As by any chance if defendant admits to the allegations filed by UNO computer systems, the judgment will surely be in favor of UNO computer systems. But if defendant denies the allegations then the matter would proceed further as per the guidelines of the federal court, which will give enough time to Tech performance to be prepared with their set of defense statement.

Hence While filing the answers the defendant may file an affirmative defense according to which the defendant will agree to the truth of the complaint but would raise new facts in order to confront that the defendant firm should not be held responsible/ liable for the damage sustained by UNO. The defendant could also deny Uno IT’s allegations and assert a counterclaim stating and proving that the reason of the crash occurred causing loss was due to certain actions from UNO It’s end. Also it may also allege Uno IT for the damage done to the reputation of the Tech Performance.

2. Tech Performance to file a motion to dismiss instead of an answer

The defendant may file a motion to dismiss stating that the motion might contend that even if the facts presented in the complaint are true, their legal consequences such as there is no reason to go ahead with the suit. Other section for this motion includes improper service of process and the court’s lack of jurisdiction. In this case of filing a motion, if the motion is denied the defendant will be given time to file an answer and if its granted, Uno IT will be given time to file an amended complaint.

5 0
3 years ago
A company can best accomplish diversification into new industries by:
lara31 [8.8K]

Answer and Explanation:

Option B is the correct answer

B) acquiring a company already operating in the target industry, creating a new business from scratch, or forming a joint venture with one or more companies to enter the target industry.

4 0
3 years ago
Research and planning skills involve
kolezko [41]

Answer:

D.Being punctual, managing time and enforcing polices.

3 0
3 years ago
Nov. 5 Purchased 850 units of product at a cost of $10 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November
pickupchik [31]

Answer: Please see explanation column for answer

Explanation: A perpetual inventory system maintains inventory balances ensuring that records are continually made immediately when purchases or sale are made together with any returns which are recorded in inventory accounts.

To record purchase of merchandise

Date         Account                                    Debit       Credit

Nov 5    Merchandise Inventory         $8500

         Accounts payable                                               $8,500

To record return of merchandise purchased

Nov 7      Accounts payable                  $300

       Merchandise Inventory                                          $300

To record payment of inventory

Nov 15    Accounts payable                $8,200                      

              Cash                                                                  $7,954

          Merchandise Inventory                                         $246

Calculation =

Nov 5 - Cost of merchandise purchased =  No of units x unit price = 850 x 10 =$8500

Nov 7 - Cost of merchandise returned =  No of units returned x unt price = 30 x 10 = $300

discount received = Balance from accounts payable  x discount rate = (8,500- 300) x 3%= 8200 x 0.03=  $246

   Cash  =    Accounts payable    - Merchandise Inventory = $8200 - 246 =$7984.

4 0
3 years ago
If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 unit
Ksenya-84 [330]

Answer:

-0.33

Explanation:

The calculation of the price elasticity of demand using mid point formula is shown below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)  

where,  

Change in quantity demanded is

= Q2 - Q1

= 80 units - 100 units

= -20 units

And, the average of quantity demanded would be

= (80 units + 100 units) ÷ 2

= 90 units

Change in price is

= P2 - P1

= $2 - $1

= 1

And, the average of the price is

= ($2 + $1) ÷ 2

= 1.5

So, after solving this, the price elasticity of demand is -0.33

7 0
3 years ago
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