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2. StreamKast markets video streaming servers and offers its own consumer streaming service. Presently, StreamKast is faced with a decision as to whether it should
2. StreamKast markets video streaming servers and offers its own consumer streaming service. Presently, StreamKast is faced with a decision as to whether it should obtain the streaming rights to the Russ Meyer library of cult films. If the firm moves ahead with this licensing agreement, StreamKast's up front investment in the project would be $150,000 for initial contract and server acquisition. It estimates the total market for these types of cult films is 150,000 viewings. Other data available are as follows: StreamKast suggested price for each viewing is $5 per viewing. a) What is StreamKast's unit contribution and contribution margin? b) What is the break-even point in units? In dollars? c) At the break-even point, what market share would StreamKast have in the market for these sorts of cult films? d) What share of the market would the film have to achieve to earn a 20 percent return on Streamcast's investment the first year
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