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damaskus [11]
3 years ago
5

Media outlets often have websites that provide in-depth coverage of news and events. Portions of these websites are restricted t

o 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 $2,368,800 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 $21
Variable cost per month per customer subscription $7

Determine the number of new customer accounts needed to break even on the cost of the promotional campaign. In forming your answer:

a. treat the cost of the promotional campaign as a fixed cost
b. treat the revenue less variable cost per account for the subscription period as the unit contribution margin.
Business
1 answer:
morpeh [17]3 years ago
5 0

Answer: 8,905 customers

Explanation:

Breakeven = Fixed cost / Contribution Margin

Fixed cost = $2,368,800

Contribution margin = Revenue - Variable cost

Revenue will be for 20 months because there were 2 free months:

= 21 * 20

= $420 per customer

Variable cost = 7 * 22

= $154

Contribution margin = 420 - 154

= $266

Breakeven = 2,368,800 / 266

= 8,905 customers

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Answer:

The correct answer is letter "C": The conjunctive rule.

Explanation:

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8 0
3 years ago
Bozeman sold equipment that it uses in its business for $80,000. Bozeman bought the equipment two years ago for $75,000 and has
Ad libitum [116K]

Answer:

Option (D) is correct.

Explanation:

Selling amount of equipment = $80,000

Purchasing price 2 years ago = $75,000

Depreciation expense = $20,000

Gain(Loss) = Cash proceeds - Book value

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                  = $80,000 - $55,000

Capital gain = $25,000

Therefore, the amount and character of Bozeman's gain is $25,000.

3 0
2 years ago
Garcia manufacturing's april sales forecast projects that 5,000 units will sell at a price of $10.50 per unit. the desired endin
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Budgeted Purchases = Sales units + Closing inventory - Beginning Inventory
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6 0
3 years ago
The _____ measures the dollar value at current market prices of all final goods and services produced annually by factors of pro
vlabodo [156]

Answer:

A) gross national product (GNP)

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The gross domestic product (GDP) measures the market value of the total production of final goods and services produced within a country during a year.

The GNP is different because it measures the market value of the total production of goods and services produced by the people or businesses of a country within a year. For example, sales of Apple products in Europe do not increase the GDP, but they increase the GNP.

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Production is the process of combining various immaterial inputs (plans, knowledge) with material inputs to create something that is intended for consumption (output). It is the process of producing an output, a good or service that has value and enhances people's usefulness.

To learn more about production click the given link

brainly.com/question/16755022

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