answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
kirill
2 months ago
8

A cell phone company has a fixed cost of $1,500,000 per month and a variable cost of $20 per month per subscriber. The company c

harges $39.95 per month to its cell phone customers. (2.2) a. What is the breakeven point for this company? b. The company currently has 73,000 subscribers and proposes to raise its monthly fees to $49.95 to cover add-on features such as text messaging, song downloads, game playing, and video watching. What is the new breakeven point if the variable cost increases to $25 per customer per month? c. If 10,000 subscribers will drop their service because of the monthly fee increase in Part (b), will the company still be profitable?
Business
1 answer:
Free_Kalibri [3.7K]2 months ago
4 0
a. The break-even point equals Fixed Cost divided by Contribution per unit. This results in a break-even point of $1,500,000 divided by $19.95, which equals 75,188 subscribers. b. The new break-even point would be calculated by $1,500,000 divided by $24.95, yielding 60,120 subscribers. c. Currently, the subscriber base consists of 73,000, and after accounting for a loss of 10,000 subscribers, the adjusted total is 63,000. Since 60,120 subscribers are required to break even, the company remains profitable with 2,880 extra subscribers exceeding the break-even number.
You might be interested in
What is a common workflow error that can cause duplicate expenses in QuickBooks Online?
marusya05 [3725]

Answer:

A frequent workflow mistake that may result in duplicate charges in QuickBooks Online is:

Creating duplicate transactions.

Explanation:

This typically happens due to a mix-up before entries are finalized. It can be performed by a manager or someone from the procurement team. Therefore, it’s crucial to have the accounts checked at two distinct intervals by different departments: accounting first, followed by finance. This ensures everything is accurate.

5 0
2 months ago
A random sample of 30 colleges from kiplinger's list of the best values in private college provided the data shown in the datafi
Nady [3600]

Answer:

Explanation:

(a). By plotting the data on an Excel spreadsheet, the uploaded image below represents our findings

(b) The sample correlation coefficient is calculated using the Excel Correlation function as follows;

Admission Rate (%) 4-Year Graduation Rate (%)

 44      73

 71      62

 29      89

 39      86

 66      55

 28      73

 54      63

 10      88

 26      84

 43      77

 76      71

 67      68

 6      86

 66      59

 81      66

 18       88

 31       71

 9       84

 15       86  

 8        88

 17        84

 56         62

 51         79  

 54         68

 75         50

 13         86

 40          70

 67          68

 41          47

 68          71

∴ The calculated value of the sample correlation coefficient is = -0.76

This indicates that the two variables exhibit a moderately linear inverse correlation.

Cheers, I hope this is useful.

8 0
2 months ago
Tom works for a large payroll outsourcing firm. One of his key customer’s contracts is set to expire in one month. Competition h
Nady [3600]

Answer:

He ought to present reasons why his company can satisfy the customer's particular needs.

Explanation:

It's important to articulate how the firm can meet the customer's distinct requirements.

Tom discussed industry trends, noted his firm’s successful history, and proposed pricing alternatives.

A crucial aspect he overlooked, which is vital in these circumstances, is conveying why his company stands out in fulfilling customers’ needs and supporting them toward their objectives. This is significant since various competitors provide similar services, and what distinguishes his company is its ability to better address customer expectations.

8 0
2 months ago
Assume Baldwin Corp. is downsizing the size of their workforce by 15% (to the nearest person) next year from various strategic i
marusya05 [3725]

Answer:

The organization will incur $5,100 for each employee regarding separation fees should these exit interviews take place next year

Explanation:

Information provided in the question:

Expected reduction in staff = 15% = 0.15

Cost of conducting exit interviews = $100

Standard separation cost = $5,000

Now,

Total separation cost for each employee = Cost of exit interviews + Standard separation cost

= $100 + $5,000

= $5,100

Therefore,

The organization will incur $5,100 for each employee regarding separation fees should these exit interviews take place next year

3 0
2 months ago
Zack has two savings accounts with a total of $9,000. he withdrew 10% from one and 60% from the other to buy his girlfriend an e
Scilla [3833]
To start with,
Let x signify the balance in the first savings account.
Let y signify the balance in the second savings account.

The combined total in the accounts is $9,000, leading to the equation:
x + y = 9000                      (1)

Zack withdrew 10% from account x and 60% from account y, totaling $2,175.
Thus,
0.1x + 0.6y = 2175
or
x + 6y = 21750                  (2)

To find y, subtract equation (1) from (2):
x + 6y - (x + y) = 21750 - 9000
5y = 12750
y = 2550
Next, from (1), compute:
x = 9000 - 2550 = 6450

Consequently, the balance in the first account is
0.9*x = 0.9*6450 = $5,805, while the balance remaining in the second account is
0.4*y = 0.4*2550 = $1,020.

Final answer:
The balance in the first account is $5,805 and the balance in the second account is $1,020.

8 0
3 months ago
Other questions:
  • Andrew has been asked to estimate future cash flows for his company. He is having a hard time remembering how to estimate future
    12·1 answer
  • On January 1, Boston Company completed the following transactions (use a 7% annual interest rate for all transactions): (FV of $
    14·1 answer
  • Which statement describes a benefit of international trade?
    15·2 answers
  • The Ritz-Carlton Hotel trains each employee to note the likes and dislikes of regular customers and record this information into
    11·1 answer
  • Marcus is the owner of four Pizza Pizzazz restaurants in Santa Fe. Although the employee selection and training aspects of his b
    6·1 answer
  • In​ 1986, 1996, and​ 2006, average weekly earnings in the United States were​ $310, $413, and​ $567 respectively. In​ 1986, 1996
    13·1 answer
  • Agnes pays state income tax equal to 3.75% of her federal taxable income. She pays federal income tax equal to 28.4% of her fede
    12·1 answer
  • Your company wants to set aside a fixed amount every year to a sinking fund to replace a piece of industrial equipment costing $
    13·1 answer
  • Wilson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of
    6·1 answer
  • Becker Tabletops has two support departments (Janitorial and Cafeteria) and two production departments (Cutting and Assembly). R
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!