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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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Last quarter, RP Enterprises earned $220,000 in sales revenue and had $90,000 cost of goods sold (at standard). RP also experien
Rudik [331]

Answer:

Gross profit= 131,500

Explanation:

Giving the following information:

Last quarter, RP Enterprises earned $220,000 in sales revenue and had $90,000 cost of goods sold (at standard). RP also experienced these variances: Materials price: $2,400 F Materials quantity: $1,400 U Labor price: $2,000 U Labor quantity: $1,000 F Overhead: $1,500 F

To calculate the cost of goods sold, we use actaul costs and quantity of direct labor and direct materials. Therefore, the only estimated cost is overhead.

Gross profit= 220,000 - 90,000 + 1,500= 131,500

4 0
3 years ago
Vista components has found it needs to reorganize including a significant trim of its middle management, the action will likely
DENIUS [597]

Flattening the organization and empowering employees, allowing them to get close to the customer.

There are various legal types of organizations such as corporations, governments, non-governmental organizations, political organizations, international organizations, armed forces, charitable organizations, non-profit organizations, partnerships, cooperatives, and educational institutions.

Hybrid Organization An entity that operates simultaneously in both the public and private sectors, carries out public missions, and develops commercial market activities.

Volunteer Associations are organizations made up of volunteers. Such organizations, including informal clubs and coordinating bodies, should establish jurisdictions, including informal clubs and coordinating bodies, with goals in mind that can be expressed in manifestos, mission statements, or in ways that reflect their activities in an informal way.

Depending on the circumstances, we may be able to operate without legal process. Remember, every action of an organization, legal or illegal, reflects its goals.

learn more about the organization here.  brainly.com/question/24448358

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8 0
1 year ago
In Chapter 7 bankruptcy a debtor
nalin [4]

Answer: A. is required to draw up a petition listing all assets and liabilities.

Explanation:

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3 0
2 years ago
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If you decide to eat one more chip. the change in the total amount gained that comes from this action is the Marginal benefit.


Hence the correct answer is the <u>Marginal benefit</u>



4 0
3 years ago
Read 2 more answers
Which option best describes the word ethical?
weeeeeb [17]

What are the options, sir?

Ethical usually means what is right, or morally right. For example, killing someone isn't ethical, but helping an elderly person up from falling would be the ethical thing to do.

7 0
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