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Tems11 [23]
3 years ago
12

Scenario 15-8 Mega Media Cable TV is able to purchase an exclusive right to sell a premium sports channel in its market area. Le

t's assume that Mega Media pays $100,000 a year for the exclusive marketing rights to the sports channel. Since Mega Media has already installed cable to all of the homes in its market area, the marginal cost of delivering the sports channel to subscribers is zero. The manager of Mega Media needs to know what price to charge for the sports channel service to maximize her profit. Before setting price, she hires an economist to estimate demand for the sports channel. The economist discovers that there are two types of subscribers who value premium sporting channels. First are the 3,000 die-hard sports fans who will pay as much as $150 a year for the new channel. Second, the premium sports channel will appeal to 20,000 occasional sports viewers who will pay as much as $25 a year for a subscription to it. Refer to Scenario 15-8. How much profit will Mega Media Cable TV earn if it sets the price at $25
Business
1 answer:
iren [92.7K]3 years ago
8 0

Answer:

Net profit= 475000

Explanation:

Giving the following information:

Scenario 15-8 Mega Media Cable TV can purchase an exclusive right to sell a premium sports channel in its market area.

Fix cost= $100,000

Price= $25

Occasional sports viewers= 20000

Hardcore sport viewers= 3000

Revenues= 23000*25= $575000

Fix cost= (100000)

Net profit= 475000

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An apparel manufacturing plant has estimated the variable cost to be $2.40 per unit. Fixed costs are $2,000,000 per year. Forty
marta [7]

Answer:

BEP units:          42,017

BEP dollars: 2,100,850

unit cost at 100,000 units produced: 22.40 dollars

operating profit :    1,656,000

Explanation:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

50 - 2.4 = 47.6 contirbution margin per unit

\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}

2,000,000/47.6 = 42.016,80 BEP units

BEP units x sales price = BEP dollars

42,017 x 50 = 2,100,850

(B)

fixed cosy/ units produced = fixed cost per unit

2,000,000/ 100,000 = 20 fixed cost per unit

fixed cost + variable cost = total cost

20 + 2.40 = 22.4

(C)

There are 40% units sold at the preferred customer at cost

So we sale at gain only 60% of the units:

100,000 units x 60% x 50       =  3,000,000

100,000 units x 40% x 22.40  =     896,000

Total revenue                              3,896,000

Cost: 100,000 x 22.40          <u>     (2,240,000)  </u>

operating profit                            1,656,000

4 0
3 years ago
In a unionized firm, the _____ clause of the collective bargaining agreement typically retains for management the authority to i
solmaris [256]
The answer is:  "management rights" .
_________________________________________________________
          "In a unionized firm, the <u>  management rights  </u> clause of <span>the collective bargaining agreement typically retains for management the authority to impose reasonable rules for workplace conduct and to discipline employees for just cause."
_________________________________________________________</span>
5 0
3 years ago
Federated investors has a , with each mutual fund being managed by several portfolio managers who together take responsibility f
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Federated investors has a LOAN , with each mutual fund being managed by several portfolio managers who together take responsibility for the fund's performance.
4 0
3 years ago
You are sitting around the fire at a lodge in Dillingham, Alaska, discussing a fishing expedition you are planning with your col
maw [93]

Solution :

Risk management first involves the identification of the potential risk that may be involved. It should focus both on the objectives as well as events that could cause the consequences.

Some of the major risks that can be involved are :

• sudden weather conditions which may not support the flight travel.

• Embargo on fishing by the State or local authority suddenly

• any kind of physical injury to the members of the group

• there may be forest fire around the lake

• technical error that might occur during the course of adventures

The impact for the risk that includes the majuere risk will be very high for all the parameters that can increase the cost by 40%, it can also lead to increase in time by about 20% which can cancel the expedition. . These types of risk will not be covered under any scope.

For the physical risk, the impact will be moderate for the parameters.

                            Risk Response Matrix

Risk         Response        Contigency plan         Trigger     Who is responsible

Force        Mitigate      Choosing another      Situation is               Nils

Majuere                        destination as a back  not clear in

                                        up.                               24 hours.

Physical   Mitigate      Proper training and     After observing       Eddie

injury                           safety kits                     the participants

7 0
2 years ago
The general pattern that consumption of the first few units of any good tends to bring a higher level of utility to a person tha
spin [16.1K]

Answer:

Law of Diminishing Marginal Utility

Explanation:

The Law Of Diminishing Marginal Utility states that all things being equal as consumption rises the marginal utility derived from additional unit of consumption falls.

7 0
3 years ago
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