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Analyze Star Strean's cost-volume-profit relationships Star Stream is a subscription-based video streaming service. Subscribers pay $120 per year for the service Star Stream lenses and

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Analyze Star Strean's cost-volume-profit relationships Star Stream is a subscription-based video streaming service. Subscribers pay $120 per year for the service Star Stream lenses and develops content for its subscribers. In addition, Star Stream leases servers to hold this content. These costs are not variable to the number of subscribers, but must be incurred regardless of the subscriber base. In addition, Star Stream compensates telecommunication companies for bandwidth so that Star Stream customers receive tast streaming services. These costs are variable to the number of subscribers. These and other costs are as follows: Enter your answers in whole dollars. Server lease costs per year $100,000,000 Content costs per year 2,000,000,000 Fixed operating costs per year 900,000,000 Bandwidth costs per subscriber per year 15 Variable operating costs per subscriber per year 25 a. Determine the break-even number of subscribers. subscribers b. Assume Star Stream planned to increase available programming and thus increase the annual content costs to $2,600,000,000. What impact would this change have on the break-even number of subscribers ? Break-even number of subscribers will increase to subscribers c. Assume the same content cost scenario as in (b). How much would the annual subscription need to change in order to maintain the same break-even as in (a)? The annual subscription need to increase from $ to in order to maintain the same break-even as in (a) Contribution Margin and Contribution Margin Ratio Contribu For a recent year, McDonald's (MCD) company-owned restaurants had the following sales and expenses in millions) Sales $39,600 Food and packaging ${10,252) Payroll (10,000) Occupancy (rent, depreciation, etc.) (12,358) General, Bolling, and administrative expenses (5,800) ${38,410) Operating income $1,190 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, seling, and administrative expenses .. What is McDonald's contribution margin? Round to the nearest million. (Give answer in millions of dollars) million b. What is McDonald's contribution margin ratio? c. How much would operating income increase it same-store sales increased by $2.400 million for the coming year with no change in the contribution margin rate or sed costu? Round your answer to the closest million. million

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